StockSelector.com
  Research, Select, & Monitor Thursday, October 19, 2017 7:45:06 PM ET  
Trade Ideas The Market Industries Stocks Portfolio

 
Ticker Lookup
Equity Residential$66.06($.66)(.99%)

  Quote | Ranking | Chart | Valuations | Sentiment | Industry | News | Earnings | Analysts | More...

Your Target?

 Equity Residential Reports Full Year 2015 Results
   Tuesday, February 02, 2016 4:17:04 PM ET

--Same Store NOI Increased 6.5%

--Normalized FFO per Share Increased 9.1%

Equity Residential (EQR ) today reported results for the quarter and year ended December 31, 2015. All per share results are reported as available to common shares on a diluted basis.

"We are delighted to have delivered a 9.1% increase in Normalized FFO in 2015 driven by another very strong year of same store revenue growth," said David J. Neithercut, Equity Residential’s President and CEO. "We are also pleased to have started the New Year very much in line with our original expectations and that 2016 will be yet another year of strong apartment fundamentals and above trend revenue growth."



Fourth Quarter 2015

FFO (Funds from Operations), as defined by the National Association of Real Estate Investment Trusts (NAREIT), for the fourth quarter of 2015 was $0.92 per share compared to $0.87 per share in the fourth quarter of 2014. The difference is due primarily to the various non-comparable items listed on page 25 of this release and the items described below.

For the fourth quarter of 2015, the company reported Normalized FFO of $0.93 per share compared to $0.86 per share in the same period of 2014. The following items impacted Normalized FFO per share in the quarter:

-- a positive impact of approximately $0.08 per share from higher same store net operating income (NOI) and approximately $0.01 per share from NOI from non-same store properties currently in lease-up; and

-- a negative impact of approximately $0.02 per share of lower NOI due to 2014 and 2015 transaction activity, higher general and administrative costs and other items.

Normalized FFO begins with FFO and eliminates certain items that by their nature are not comparable from period to period or that tend to obscure the company’s actual operating performance. Reconciliations and definitions of FFO and Normalized FFO are provided on pages 7 and 27 of this release and the company has included guidance for Normalized FFO on page 26 and FFO on page 27 of this release.

For the fourth quarter of 2015, the company reported earnings of $0.55 per share compared to $0.59 per share in the fourth quarter of 2014. The difference is due primarily to lower gains on asset sales in the fourth quarter of 2015 and the items described above.

Year Ended December 31, 2015

FFO for the year ended December 31, 2015 was $3.48 per share compared to $3.15 per share in the same period of 2014.

For the year ended December 31, 2015, the company reported Normalized FFO of $3.46 per share compared to $3.17 per share for the same period of 2014.

For the year ended December 31, 2015, the company reported earnings of $2.36 per share compared to $1.73 per share for the same period of 2014. The difference is due primarily to higher gains on property sales and improved operations during the year ended December 31, 2015.

Same Store Results

On a same store fourth quarter to fourth quarter comparison, which includes 98,202 apartment units, revenues increased 5.2%, expenses increased 2.0% and NOI increased 6.8%. Average rental rate increased 5.2% and occupancy remained even at 96.0%.

On a same store year to year comparison, which includes 96,286 apartment units, revenues increased 5.1%, expenses increased 2.5% and NOI increased 6.5%. Average rental rate increased 4.8% and occupancy increased 0.3% to 96.1%.

Investment Activity

During the fourth quarter of 2015, the company acquired three properties, two in Seattle and one in Orange County, California, consisting of 423 apartment units for an aggregate purchase price of approximately $165.8 million at a weighted average capitalization (cap) rate of 4.7%.

During the fourth quarter of 2015, the company sold one consolidated apartment property located in Seattle, consisting of 150 apartment units, for a sale price of approximately $48.5 million at a cap rate of 4.5% generating an unlevered internal rate of return (IRR), inclusive of indirect management costs, of 12.8%.

During 2015, the company acquired four properties consisting of 625 apartment units for an aggregate purchase price of approximately $296.0 million at a weighted average cap rate of 4.5% and three contiguous land parcels for an aggregate purchase price of $27.8 million. Also during 2015, the company completed seven development projects consisting of 1,546 apartment units for a total development cost of approximately $835.1 million.

During 2015, the company sold eight consolidated apartment properties, consisting of 1,857 apartment units, for an aggregate sale price of approximately $390.0 million at a weighted average cap rate of 5.5%. The company also sold a 193,230 square foot medical office building located adjacent to its Longfellow Place property in Boston for approximately $123.3 million at a cap rate of 4.5%. These combined sales generated an unlevered IRR, inclusive of indirect management costs, of 13.4%.

Asset Sale to Starwood

As previously announced on January 27, 2016, the company completed the sale of 72 properties consisting of 23,262 apartment units to controlled affiliates of Starwood Capital Group for $5.365 billion, or approximately $230,634 per unit on average, generating an unlevered IRR, inclusive of indirect management costs, of 11.1%.

Debt Extinguishments

In connection with the Starwood sale and other anticipated 2016 asset sales, the company has retired in 2016 approximately $1.7 billion in debt principal prior to scheduled maturity with an additional $271.2 million anticipated to be retired at par at maturity on March 15, 2016. In addition, no commercial paper or revolving credit facility balances were outstanding as of February 2, 2016. The debt payoffs included both secured and unsecured debt in order to maintain the company’s existing credit metrics and strong credit profile. The company incurred approximately $112.4 million in prepayment penalties associated with these debt extinguishments. The prepayment penalties, including certain related write-offs of unamortized deferred financing costs, premiums/discounts and derivative settlements, will reduce earnings per share and FFO in the first quarter of 2016 by approximately $120.1 million but will not impact Normalized FFO. A summary table of the debt retired is set forth below:

                ($) in thousands                    Maturity                 Principal                      GAAP               Prepayment
                                                                                                                 Amount Repaid                                 Interest Rate (1)                             Penalty
------------------------------------------------                      ---------                      ---------------------------------                        -----------------                      --------------------
                                                                                                                                                                                                      
Mortgage notes payable:
                                                                                                                                                                                                      
   6.256% Fannie Mae Pool 3                                              2017                           $   440,806                                                 3.671%                                    $     29,291
   Various Secured - Tax Exempt (2)                       2026-2034                             41,795                                                 various                                            194
                                                                                                                                                                                                      
Notes, net:
                                                                                                                                                                                                      
   5.125% Notes due 2016 (3)                                             2016                               228,757                                                 5.274%                                           1,382
   5.375% Notes due 2016                                                 2016                               400,000                                                 5.091%                                           9,475
   5.750% Notes due 2017                                                 2017                               255,923                                                 5.785%                                          16,494
   7.125% Notes due 2017                                                 2017                                46,102                                                 7.168%                                           4,648
   4.625% Notes due 2021                                                 2021                               250,000                                                 5.989%                                          31,638
   7.570% Notes due 2026                                                 2026                                47,975                              7.557%                                          19,302
                                                                                                     -----------------------------------                                                             ----------------------
                                                                                                                                                                                                      
Total                                                                                                   $ 1,711,358                                                                        $    112,424
                                                                                                     ==== ========= ====================                                                             ========== ==========
(1) GAAP interest rate is defined as cash interest paid net of
discount/(premium) amortization and deferred derivative settlement
amortization as applicable in determining interest expense.
(2) Includes various tax exempt mortgage notes that encumbered
assets sold as part of the Starwood portfolio.
(3) $228.8 million in 5.125% notes due 2016 were retired in
conjunction with the company’s tender offer with the remaining
$271.2 million anticipated to be retired at par at maturity on March
15, 2016.

First Quarter 2016 Guidance

The company has established a Normalized FFO guidance range of $0.73 to $0.77 per share for the first quarter of 2016. The difference between the company’s fourth quarter 2015 Normalized FFO of $0.93 per share and the midpoint of the first quarter 2016 guidance range of $0.75 per share is due primarily to:

-- a negative impact of approximately $0.17 per share from lower NOI due to 2016 transaction activity including the portfolio sale to Starwood;

-- a negative impact of approximately $0.04 per share from lower NOI primarily as a result of higher seasonal operating expenses in the first quarter of 2016;

-- a negative impact of approximately $0.01 per share from higher general and administrative and property management costs; and

-- a positive impact of approximately $0.04 per share from lower total interest expense.

Full Year 2016 Guidance

The company has established a Normalized FFO guidance range of $3.00 to $3.20 per share for the full year 2016. The assumptions underlying this guidance can be found on page 26 of this release. The difference between the company’s full-year 2015 Normalized FFO of $3.46 per share and the midpoint of the full year 2016 guidance range of $3.10 per share is primarily due to:

-- a negative impact of approximately $0.90 per share from lower NOI due to 2016 transaction activity including the portfolio sale to Starwood;

-- a positive impact of approximately $0.23 per share from higher NOI from the company’s full year 2016 same store pool of approximately 70,000 apartment units;

-- a positive impact of approximately $0.12 per share from higher NOI from development properties in lease-up;

-- a positive impact of approximately $0.21 per share from lower total interest expense; and

-- a negative impact of approximately $0.02 per share from other items.

Special Dividends and 2016 Common Share Dividend

In addition to regular quarterly dividends, Equity Residential anticipates paying two special dividends to its common shareholders in 2016 totaling $10.00 to $12.00 per share. The company expects to pay, in the second quarter of 2016, a special dividend of approximately $8.00 per share from proceeds from the asset sales closed in the first few months of 2016, including the sale to Starwood, and an additional special dividend of approximately $2.00 to $4.00 per share later in the year from the proceeds of additional asset sales.

In regards to the company’s regular quarterly common share dividend, as previously announced, the company’s dividend policy is to pay 65% of the midpoint of the range of Normalized FFO guidance customarily provided as part of the company’s fourth quarter earnings release. Based on the guidance above, the company expects to pay four quarterly common share dividends of $0.50375 per share for an annual common share dividend of $2.015 per share in 2016. All future dividends remain subject to the discretion of the company’s Board of Trustees.

First Quarter 2016 Earnings and Conference Call

Equity Residential expects to announce first quarter 2016 results on Tuesday, April 26, 2016 and host a conference call to discuss those results at 10:00 a.m. CT on Wednesday, April 27, 2016.

About Equity Residential

Equity Residential is an S&P 500 company focused on the acquisition, development and management of high quality apartment properties in top U.S. growth markets. As of January 31, 2016, Equity Residential owns or has investments in 316 properties consisting of 85,391 apartment units located primarily in Boston, New York, Washington DC, Seattle, San Francisco and Southern California. For more information on Equity Residential, please visit our website at www.equityapartments.com.

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements and information within the meaning of the federal securities laws. These statements are based on current expectations, estimates, projections and assumptions made by management. While Equity Residential’s management believes the assumptions underlying its forward-looking statements are reasonable, such information is inherently subject to uncertainties and may involve certain risks, including, without limitation, changes in general market conditions, including the rate of job growth and cost of labor and construction material, the level of new multifamily construction and development, competition and local government regulation. Other risks and uncertainties are described under the heading "Risk Factors" in our Annual Report on Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission (SEC) and available on our website, www.equityapartments.com. Many of these uncertainties and risks are difficult to predict and beyond management’s control. Forward-looking statements are not guarantees of future performance, results or events. Equity Residential assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

A live web cast of the company’s conference call discussing these results will take place tomorrow, Wednesday, February 3, at 10:00 a.m. Central. Please visit the Investor section of the company’s web site at www.equityapartments.com for the link. A replay of the web cast will be available for two weeks at this site.

                                                                                                                                                                                   Equity Residential
                                                                                                                                                                          Consolidated Statements of Operations
                                                                                                                                                                      (Amounts in thousands except per share data)
                                                                                                                                                                                       (Unaudited)
 
                                                                                                                             Year Ended December 31,                                                                                                             Quarter Ended December 31,
                                                                                          ----------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                  2015                                                    2014                                                                          2015                                                       2014
                                                                                          ----------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
REVENUES
  Rental income                                                                                              $ 2,736,578                                                              $      2,605,311                                                              $        701,219                                                              $        662,819
  Fee and asset management                                                                      8,387                                   9,437                                   1,974                                   1,841  
                                                                                          -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
    Total revenues                                                                          2,744,965                               2,614,748                                 703,193                                 664,660  
                                                                                          -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                
EXPENSES
  Property and maintenance                                                                                       479,160                                                                       473,098                                                                       114,212                                                                       112,011
  Real estate taxes and insurance                                                                                339,802                                                                       325,401                                                                        85,289                                                                        79,684
  Property management                                                                                             81,185                                                                        79,636                                                                        20,298                                                                        18,556
  Fee and asset management                                                                                         5,021                                                                         5,429                                                                         1,257                                                                         1,136
  Depreciation                                                                                                   765,895                                                                       758,861                                                                       181,033                                                                       193,089
  General and administrative                                                                   65,082                                  50,948                                  14,140                                   9,652  
                                                                                          -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
    Total expenses                                                                          1,736,145                               1,693,373                                 416,229                                 414,128  
                                                                                          -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                
Operating income                                                                                               1,008,820                                                                       921,375                                                                       286,964                                                                       250,532
                                                                                                                                                                                                                                                                                                                                
  Interest and other income                                                                                        7,372                                                                         4,462                                                                           466                                                                         1,249
  Other expenses                                                                                                  (2,942 )                                                                      (9,073 )                                                                        (103 )                                                                      (1,894 )
  Interest:
    Expense incurred, net                                                                                       (444,069 )                                                                    (457,191 )                                                                    (110,447 )                                                                    (109,967 )
    Amortization of deferred financing costs                                                  (10,801 )                                                  (11,088 )                                                   (3,067 )                                                   (2,534 )
                                                                                          -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Income before income and other taxes, income (loss) from investments                                             558,380                                                                       448,485                                                                       173,813                                                                       137,386
in
unconsolidated entities, net gain (loss) on sales of real estate
properties
and land parcels and discontinued operations
Income and other tax (expense) benefit                                                                              (917 )                                                                      (1,394 )                                                                        (219 )                                                                        (248 )
Income (loss) from investments in unconsolidated entities                                                         15,025                                                                        (7,952 )                                                                         637                                                                         2,249
Net gain on sales of real estate properties                                                                      335,134                                                                       212,685                                                                        39,442                                                                        84,141
Net (loss) gain on sales of land parcels                                                           (1 )                                                    5,277                          --                                   3,431  
                                                                                          -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Income from continuing operations                                                                                907,621                                                                       657,101                                                                       213,673                                                                       226,959
Discontinued operations, net                                                                      397                                   1,582                                      47                                      82  
                                                                                          -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net income                                                                                                       908,018                                                                       658,683                                                                       213,720                                                                       227,041
Net (income) attributable to Noncontrolling Interests:
  Operating Partnership                                                                                          (34,241 )                                                                     (24,831 )                                                                      (8,050 )                                                                      (8,558 )
  Partially Owned Properties                                                                   (3,657 )                                                   (2,544 )                                                   (1,184 )                                                     (744 )
                                                                                          -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net income attributable to controlling interests                                                                 870,120                                                                       631,308                                                                       204,486                                                                       217,739
Preferred distributions                                                                                           (3,357 )                                                                      (4,145 )                                                                        (800 )                                                                      (1,036 )
Premium on redemption of Preferred Shares                                                      (3,486 )                                           --                                    (697 )                                           --  
                                                                                          -------------------- --------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net income available to Common Shares                                                                        $   863,277                                           $        627,163                                           $        202,989                                           $        216,703  
                                                                                          ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                
Earnings per share - basic:
Income from continuing operations available to Common Shares                                                 $      2.37                                           $           1.73                                           $           0.56                                           $           0.60  
                                                                                          ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
Net income available to Common Shares                                                                        $      2.37                                           $           1.74                                           $           0.56                                           $           0.60  
                                                                                          ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
Weighted average Common Shares outstanding                                                    363,498                                 361,181                                 363,828                                 362,018  
                                                                                          ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                
Earnings per share - diluted:
Income from continuing operations available to Common Shares                                                 $      2.36                                           $           1.72                                           $           0.55                                           $           0.59  
                                                                                          ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
Net income available to Common Shares                                                                        $      2.36                                           $           1.73                                           $           0.55                                           $           0.59  
                                                                                          ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
Weighted average Common Shares outstanding                                                    380,620                                 377,735                                 381,220                                 378,886  
                                                                                          ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                
Distributions declared per Common Share outstanding                                                          $      2.21                                           $           2.00                                           $         0.5525                                           $           0.50  
                                                                                          ==================== ========= ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                            Equity Residential
                                                                                                                                                                      Consolidated Statements of Funds From Operations and Normalized
                                                                                                                                                                                           Funds From Operations
                                                                                                                                                                               (Amounts in thousands except per share data)
                                                                                                                                                                                                (Unaudited)
 
                                                                                                                                            Year Ended December 31,                                                                                                                Quarter Ended December 31,
                                                                                                       ---------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                 2015                                                       2014                                                                          2015                                                       2014
                                                                                                       ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
Net income                                                                                                                $        908,018                                                              $        658,683                                                              $        213,720                                                              $        227,041
Net (income) attributable to Noncontrolling Interests - Partially                                                      (3,657 )                                                                      (2,544 )                                                                      (1,184 )                                                                        (744 )
Owned Properties
Preferred distributions                                                                                                             (3,357 )                                                                      (4,145 )                                                                        (800 )                                                                      (1,036 )
Premium on redemption of Preferred Shares                                                                        (3,486 )                                           --                                    (697 )                                           --  
                                                                                                       -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Net income available to Common Shares and Units                                                                                    897,518                                                                       651,994                                                                       211,039                                                                       225,261
                                                                                                                                                                                                                                                                                                                                                  
Adjustments:
   Depreciation                                                                                                                    765,895                                                                       758,861                                                                       181,033                                                                       193,089
   Depreciation - Non-real estate additions                                                                            (4,981 )                                                                      (4,643 )                                                                      (1,214 )                                                                      (1,158 )
   Depreciation - Partially Owned Properties                                                                           (4,332 )                                                                      (4,285 )                                                                      (1,084 )                                                                      (1,074 )
   Depreciation - Unconsolidated Properties                                                                             4,920                                                                         6,754                                                                         1,232                                                                         1,572
   Net (gain) on sales of unconsolidated entities - operating assets                                                     (100 )                                                                      (4,902 )                                                              --                                                                        (4,902 )
   Net (gain) on sales of real estate properties                                                                                  (335,134 )                                                                    (212,685 )                                                                     (39,442 )                                                                     (84,141 )
   Discontinued operations:
      Net (gain) loss on sales of discontinued operations                                                --                                    (179 )                                           --                                      44  
                                                                                                       -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
FFO available to Common Shares and Units (1) (3) (4)                                                                             1,323,786                                                                     1,190,915                                                                       351,564                                                                       328,691
                                                                                                                                                                                                                                                                                                                                                  
Adjustments (see page 25 for additional detail):
   Asset impairment and valuation allowances                                                                                --                                                                --                                                                --                                                                --
   Property acquisition costs and write-off of pursuit costs                                                                       (11,706 )                                                                       8,248                                                                         2,241                                                                          (466 )
   Debt extinguishment (gains) losses, including prepayment penalties,
   preferred share
   redemptions and non-cash convertible debt discounts                                                                               5,704                                                                        (1,110 )                                                                       1,203                                                                        (1,623 )
   (Gains) losses on sales of non-operating assets, net of income and
   other tax expense
   (benefit)                                                                                                                        (2,883 )                                                                      (1,866 )                                                                      (2,155 )                                                                          37
   Other miscellaneous non-comparable items                                                                       2,901                                     259                                     200                                    (932 )
                                                                                                       -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Normalized FFO available to Common Shares and Units (2) (3) (4)                                                           $      1,317,802                                           $      1,196,446                                           $        353,053                                           $        325,707  
                                                                                                       ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                  
FFO (1) (3)                                                                                                               $      1,330,629                                                              $      1,195,060                                                              $        353,061                                                              $        329,727
Preferred distributions                                                                                                             (3,357 )                                                                      (4,145 )                                                                        (800 )                                                                      (1,036 )
Premium on redemption of Preferred Shares                                                                        (3,486 )                                           --                                    (697 )                                           --  
                                                                                                       -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
FFO available to Common Shares and Units - basic and diluted (1) (3)                                                      $      1,323,786                                           $      1,190,915                                           $        351,564                                           $        328,691  
(4)
                                                                                                       ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
FFO per share and Unit - basic                                                                                            $           3.51                                           $           3.18                                           $           0.93                                           $           0.87  
                                                                                                       ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
FFO per share and Unit - diluted                                                                                          $           3.48                                           $           3.15                                           $           0.92                                           $           0.87  
                                                                                                       ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                  
Normalized FFO (2) (3)                                                                                                    $      1,321,159                                                              $      1,200,591                                                              $        353,853                                                              $        326,743
Preferred distributions                                                                                          (3,357 )                                                   (4,145 )                                                     (800 )                                                   (1,036 )
                                                                                                       -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Normalized FFO available to Common Shares and Units - basic and                                                           $      1,317,802                                           $      1,196,446                                           $        353,053                                           $        325,707  
diluted (2) (3) (4)
                                                                                                       ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
Normalized FFO per share and Unit - basic                                                                                 $           3.49                                           $           3.19                                           $           0.94                                           $           0.87  
                                                                                                       ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
Normalized FFO per share and Unit - diluted                                                                               $           3.46                                           $           3.17                                           $           0.93                                           $           0.86  
                                                                                                       ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                  
Weighted average Common Shares and Units outstanding - basic                                                    377,073                                 374,899                                 377,380                                 375,711  
                                                                                                       ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
Weighted average Common Shares and Units outstanding - diluted                                                  380,620                                 377,735                                 381,220                                 378,886  
                                                                                                       ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
Note:   See page 25 for additional detail regarding the adjustments
                           from FFO to Normalized FFO. See page 27 for the definitions, the
                           footnotes referenced above and the reconciliations of EPS to FFO
                           and Normalized FFO.
                                                                                                       Equity Residential
                                                                                                   Consolidated Balance Sheets
                                                                                         (Amounts in thousands except for share amounts)
                                                                                                           (Unaudited)
                                                                                                                                 
                                                                                                                  December 31,                                                                December 31,
                                                                                                                      2015                                                                        2014
                                                                                              --------------------------------------------------                        ------------------------------------------------------
ASSETS
Investment in real estate
  Land                                                                                                           $  5,864,046                                                              $      6,295,404
  Depreciable property                                                                                             18,027,087                                                                    19,851,504
  Projects under development                                                                                        1,122,376                                                                     1,343,919
  Land held for development                                                                        168,843                                 184,556  
                                                                                              -------------------- ---------- --------------------                      -------------------- -------------- --------------------
Investment in real estate                                                                                          25,182,352                                                                    27,675,383
  Accumulated depreciation                                                                      (4,905,406 )                                               (5,432,805 )
                                                                                              -------------------- ---------- --------------------                      -------------------- -------------- --------------------
Investment in real estate, net                                                                                     20,276,946                                                                    22,242,578
Real estate held for sale                                                                                           2,181,135                                                                --
Cash and cash equivalents                                                                                              42,276                                                                        40,080
Investments in unconsolidated entities                                                                                 68,101                                                                       105,434
Deposits - restricted                                                                                     55,893                                                                        72,303
Escrow deposits - mortgage                                                                                56,946                                                                        48,085
Deferred financing costs, net                                                                                          54,004                                                                        58,380
Other assets                                                                                       422,027                                 383,754  
                                                                                              -------------------- ---------- --------------------                      -------------------- -------------- --------------------
        Total assets                                                                                             $ 23,157,328                                           $     22,950,614  
                                                                                              ==================== ========== ====================                      ==================== ============== ====================
                                                                                                                                                                         
LIABILITIES AND EQUITY
Liabilities:
  Mortgage notes payable                                                                                         $  4,704,870                                                              $      5,086,515
  Notes, net                                                                                                        5,876,352                                                                     5,425,346
  Line of credit and commercial paper                                                                                 387,276                                                                       333,000
  Accounts payable and accrued expenses                                                                               187,124                                                                       153,590
  Accrued interest payable                                                                                             85,221                                                                        89,540
  Other liabilities                                                                                                   366,387                                                                       389,915
  Security deposits                                                                                                    77,582                                                                        75,633
  Distributions payable                                                                            209,378                                 188,566  
                                                                                              -------------------- ---------- --------------------                      -------------------- -------------- --------------------
        Total liabilities                                                                       11,894,190                              11,742,105  
                                                                                              -------------------- ---------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                         
Commitments and contingencies
                                                                                                                                                                         
Redeemable Noncontrolling Interests - Operating Partnership                           566,783                                 500,733  
                                                                                              -------------------- ---------- --------------------                      -------------------- -------------- --------------------
Equity:
  Shareholders’ equity:
    Preferred Shares of beneficial interest, $0.01 par value;                                                          37,280                                                                        50,000
    100,000,000 shares authorized; 745,600 shares issued and
    outstanding as of December 31, 2015 and 1,000,000 shares
    issued and outstanding as of December 31, 2014
    Common Shares of beneficial interest, $0.01 par value;                                                              3,648                                                                         3,629
    1,000,000,000 shares authorized; 364,755,444 shares issued and
    outstanding as of December 31, 2015 and 362,855,454 shares
    issued and outstanding as of December 31, 2014
    Paid in capital                                                                                                 8,572,365                                                                     8,536,340
    Retained earnings                                                                                               2,009,091                                                                     1,950,639
    Accumulated other comprehensive (loss)                                                        (152,016 )                                                 (172,152 )
                                                                                              -------------------- ---------- --------------------                      -------------------- -------------- --------------------
        Total shareholders’ equity                                                      10,470,368                                                                    10,368,456
  Noncontrolling Interests:
    Operating Partnership                                                                                             221,379                                                                       214,411
    Partially Owned Properties                                                                       4,608                                 124,909  
                                                                                              -------------------- ---------- --------------------                      -------------------- -------------- --------------------
        Total Noncontrolling Interests                                                             225,987                                 339,320  
                                                                                              -------------------- ---------- --------------------                      -------------------- -------------- --------------------
        Total equity                                                                            10,696,355                              10,707,776  
                                                                                              -------------------- ---------- --------------------                      -------------------- -------------- --------------------
        Total liabilities and equity                                                                             $ 23,157,328                                           $     22,950,614  
                                                                                              ==================== ========== ====================                      ==================== ============== ====================
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                Equity Residential
                                                                                                 Portfolio Summary
                                                                                              As of December 31, 2015
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                 
                                                                                                                                     % of                                                    Average
                                                                                       Apartment                                  Stabilized                                                 Rental
       Markets/Metro Areas                            Properties                         Units                                      NOI (1)                                                 Rate (2)
--------------------------------                      ----------                      ---------                      ------------------------------------                     ------------------------------------
                                                                                                                                                                               
Core:
New York                                                      40                         10,835                                17.6 %                                                            $          4,112
Washington DC                                                 57                         18,656                                17.0 %                                                                       2,212
San Francisco                                                 53                         13,656                                15.1 %                                                                       2,704
Los Angeles                                                   61                         13,313                                12.3 %                                                                       2,339
Boston                                                        35                          8,018                                 9.5 %                                                                       2,885
Seattle                                                       44                          8,756                                 7.6 %                                                                       2,045
Orange County, CA                                             12                          3,684                                 3.1 %                                                                       1,907
San Diego                                                     13                          3,505                                 3.1 %                                                    2,089
                                                      ----------                      ---------                      -------------- --------------------                      -------------------- --------------
Subtotal - Core                                 315                         80,423                                85.3 %                                                                       2,606
                                                                                                                                                                               
Non-Core:
South Florida                                                 35                         11,435                                 7.2 %                                                                       1,708
Denver                                                        19                          6,935                                 4.6 %                                                                       1,565
Inland Empire, CA                                              9                          2,751                                 1.9 %                                                                       1,631
All Other Markets                                             14                          2,969                                 1.0 %                                                    1,226
                                                      ----------                      ---------                      -------------- --------------------                      -------------------- --------------
Subtotal - Non-Core                              77                         24,090                                14.7 %                                                    1,599
                                                      ----------                      ---------                      -------------- --------------------                      -------------------- --------------
Total                                                        392                        104,513                               100.0 %                                                    2,372
                                                      ----------                      ---------                      -------------- --------------------                      -------------------- --------------
                                                                                                                                                                               
Military Housing                                               2                          5,139                      --                          --
                                                      ----------                      ---------                      -------------- --------------------                      -------------------- --------------
                                                                                                                                                                               
Grand Total                                                  394                        109,652                               100.0 %                                                            $          2,372
                                                      ==========                      =========                      ============== ====================                      ==================== ==============
Note: Projects under development are not included in the Portfolio
Summary until construction has been completed.
(1) % of Stabilized NOI includes actual 2015 NOI for stabilized
properties and projected annual NOI at stabilization (defined as
having achieved 90% occupancy for three consecutive months) for
properties that are in lease-up.
(2) Average rental rate is defined as total rental revenues divided
by the weighted average occupied apartment units for the last month
of the period presented.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                           Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                    Portfolio as of December 31, 2015
 
                                                                                                  Properties                           Apartment                      
                                                                                                                                                                                                  Units
                                                                                                                                     ---------------                       ------------------------------------------------
Wholly Owned Properties                                                                                                                         367                                               98,608
Master-Leased Properties - Consolidated                                                                                                           3                                                  853
Partially Owned Properties - Consolidated                                                                                                        19                                                3,771
Partially Owned Properties - Unconsolidated                                                                                                       3                                                1,281
Military Housing                                                                                                                                  2                             5,139  
                                                                                                                                     --------------                        -------------------- -------- --------------------
                                                                                                                                                394                           109,652  
                                                                                                                                     ==============                        ==================== ======== ====================
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                      Portfolio Rollforward Q4 2015
                                                                                                                            ($ in thousands)
 
                                                                                         Properties                                      Apartment                                              Purchase/                                                Cap Rate
                                                                                                                                           Units                                              (Sale) Price
                                                                            ----------------------------------                       ---------------                       ------------------------------------------------                        -------------------
                                             9/30/2015                                 392                                                  109,347
Acquisitions:
  Consolidated:
    Rental Properties                                                                    3                                                      423                                           $  165,762                                                  4.7 %
Dispositions:
  Consolidated:
    Rental Properties                                                                   (1 )                                                   (150 )                                         $  (48,500 )                                                4.5 %
Configuration Changes                                                       --                                    32
                                                                            -------------- --------------------                      --------------
                                                                                                                                                                                                                                                    
                                            12/31/2015                                 394                               109,652
                                                                            ============== ====================                      ==============
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                       Portfolio Rollforward 2015
                                                                                                                            ($ in thousands)
 
                                                                                         Properties                                      Apartment                                              Purchase/                                                Cap Rate
                                                                                                                                           Units                                              (Sale) Price
                                                                            ----------------------------------                       ---------------                       ------------------------------------------------                        -------------------
                                            12/31/2014                                 391                                                  109,225
Acquisitions:
  Consolidated:
    Rental Properties                                                                    4                                                      625                                           $  296,037                                                  4.5 %
    Land Parcels (A)                                                        --                                           --                                           $   27,800
Dispositions:
  Consolidated:
    Rental Properties (B)                                                               (8 )                                                 (1,857 )                                         $ (513,312 )                                                5.3 %
Completed Developments - Consolidated                                                    7                                                    1,546
Configuration Changes                                                       --                                   113
                                                                            -------------- --------------------                      --------------
                                                                                                                                                                                                                                                    
                                            12/31/2015                                 394                               109,652
                                                                            ============== ====================                      ==============
(A)   The Company acquired three contiguous land parcels in San Francisco
                         during 2015 which will be combined for future development.
(B)                      Includes a 193,230 square foot medical office building adjacent to
                         our Longfellow Place property in Boston (sales price of
                         approximately $123.3 million) which is included in our consolidated
                         rental dispositions guidance but not included in our property and
                         apartment unit counts.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                               Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                   Fourth Quarter 2015 vs. Fourth Quarter 2014
                                                                                                                                          Same Store Results/Statistics for 98,202 Same Store Apartment
                                                                                                                                                                      Units
                                                                                                                                                 $ in thousands (except for Average Rental Rate)
 
                                                                                                 Results                                                                                                                                 Statistics
                                          ----------------------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------
     Description                                         Revenues                               Expenses                                NOI (1)                                                  Average                      Occupancy              Turnover
                                                                                                                                                                                                                                       Rental
                                                                                                                                                                                                                                      Rate (2)
--------------------                      -----------------------------------                        ---------------------------------                        -----------------------------------                        --------------------------------                        -------------------                       -------------------
                                                                                                                                                                                                                                                                                                                            
       Q4 2015                                 $   666,440                                                $ 207,889                                                $   458,551                                                $  2,357                                                 96.0 %                                    11.4 %
       Q4 2014                                 $   633,240                             $ 203,860                             $   429,380                             $  2,240                              96.0 %                                    12.3 %
                                          ------ --------- --------------------                      ------ ------- --------------------                      ------ --------- --------------------                      ------ ------ --------------------                      ---------- ---------                      ---------- ---------
                                                                                                                                                                                                                                                                                                                            
       Change                                  $    33,200                             $   4,029                             $    29,171                             $    117                               0.0 %                                    (0.9 %)
                                          ====== ========= ====================                      ====== ======= ====================                      ====== ========= ====================                      ====== ====== ====================                      ========== =========                      ========== =========
                                                                                                                                                                                                                                                                                                                            
       Change                                          5.2 %                                                    2.0 %                                                      6.8 %                                                   5.2 %
                                                                                        
-------------------- -------------------- ---------------------------------------------------------- -------------------------------------------------------- ---------------------------------------------------------- ------------------------------------------------------- ----------------------------------------- ---------------------
                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                   Fourth Quarter 2015 vs. Third Quarter 2015
                                                                                                                                         Same Store Results/Statistics for 100,124 Same Store Apartment
                                                                                                                                                                      Units
                                                                                                                                                 $ in thousands (except for Average Rental Rate)
 
                                                                                                                    Results                                                                                                                                                    Statistics
                                          ----------------------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------
     Description                                         Revenues                                                  Expenses                                                   NOI (1)                                                  Average                                         Occupancy                                 Turnover
                                                                                                                                                                                                                                       Rental
                                                                                                                                                                                                                                      Rate (2)
--------------------                      -----------------------------------                        ---------------------------------                        -----------------------------------                        --------------------------------                        -------------------                       -------------------
                                                                                                                                                                                                                                                                                                                            
       Q4 2015                                 $   680,190                                                $ 211,993                                                $   468,197                                                $  2,359                                                 96.0 %                                    11.5 %
       Q3 2015                                 $   677,812                             $ 220,956                             $   456,856                             $  2,349                              96.1 %                                    17.6 %
                                          ------ --------- --------------------                      ------ ------- --------------------                      ------ --------- --------------------                      ------ ------ --------------------                      ---------- ---------                      ---------- ---------
                                                                                                                                                                                                                                                                                                                            
       Change                                  $     2,378                             $  (8,963 )                                              $    11,341                             $     10                              (0.1 %)                                   (6.1 %)
                                          ====== ========= ====================                      ====== ======= ====================                      ====== ========= ====================                      ====== ====== ====================                      ========== =========                      ========== =========
                                                                                                                                                                                                                                                                                                                            
       Change                                          0.4 %                                                   (4.1 %)                                                     2.5 %                                                   0.4 %
                                                                                        
-------------------- -------------------- ---------------------------------------------------------- -------------------------------------------------------- ---------------------------------------------------------- ------------------------------------------------------- ----------------------------------------- ---------------------
                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                  2015 vs. 2014
                                                                                                                                          Same Store Results/Statistics for 96,286 Same Store Apartment
                                                                                                                                                                      Units
                                                                                                                                                 $ in thousands (except for Average Rental Rate)
 
                                                                                                                    Results                                                                                                                                                    Statistics
                                          ----------------------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------
     Description                                         Revenues                                                  Expenses                                                   NOI (1)                                                  Average                                         Occupancy                                 Turnover
                                                                                                                                                                                                                                       Rental
                                                                                                                                                                                                                                      Rate (2)
--------------------                      -----------------------------------                        ---------------------------------                        -----------------------------------                        --------------------------------                        -------------------                       -------------------
                                                                                                                                                                                                                                                                                                                            
        2015                                   $ 2,566,705                                                $ 837,880                                                $ 1,728,825                                                $  2,314                                                 96.1 %                                    54.5 %
        2014                                   $ 2,441,390                             $ 817,337                             $ 1,624,053                             $  2,208                              95.8 %                                    54.9 %
                                          ------ --------- --------------------                      ------ ------- --------------------                      ------ --------- --------------------                      ------ ------ --------------------                      ---------- ---------                      ---------- ---------
                                                                                                                                                                                                                                                                                                                            
       Change                                  $   125,315                             $  20,543                             $   104,772                             $    106                               0.3 %                                    (0.4 %)
                                          ====== ========= ====================                      ====== ======= ====================                      ====== ========= ====================                      ====== ====== ====================                      ========== =========                      ========== =========
                                                                                                                                                                                                                                                                                                                            
       Change                                          5.1 %                                                    2.5 %                                                      6.5 %                                                   4.8 %
(1)   The Company’s primary financial measure for evaluating each of its
                         apartment communities is net operating income ("NOI"). NOI
                         represents rental income less direct property operating expenses
                         (including real estate taxes and insurance) as well as an allocation
                         of indirect property management costs. The Company believes that NOI
                         is helpful to investors as a supplemental measure of its operating
                         performance because it is a direct measure of the actual operating
                         results of the Company’s apartment communities. See page 27 for
                         reconciliations from operating income.
(2)                      Average rental rate is defined as total rental revenues divided by
                         the weighted average occupied apartment units for the period.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                          Equity Residential
                                                                                                                                                                                              Fourth Quarter 2015 vs. Fourth Quarter 2014
                                                                                                                                                                                                Same Store Results/Statistics by Market
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                  Increase (Decrease) from Prior Year’s Quarter
                                                                                                                                                                                                                                         ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Markets/Metro Areas                                  Apartment                                  Q4 2015                                         Q4 2015                                        Q4 2015                                  Revenues               Expenses                  NOI                  Average               Occupancy
                                                              Units                                     % of                                           Average                                       Weighted                                                                                                                                                                 Rental
                                                                                                       Actual                                          Rental                                         Average                                                                                                                                                                Rate (1)
                                                                                                         NOI                                          Rate (1)                                      Occupancy %
--------------------------------                      --------------------                      -------------------                       ------------------------------                       -------------------                       -------------------                       -------------------  -------------------- -------------------                       -------------------                       -------------------
                                                                                                                                                                                                                                                                                                         
Core:
Washington DC                                                       18,134                            17.3 %                                                 $      2,221                            95.6 %                                     0.9 %                                     0.7 %                                     0.9 %                                     0.6 %                                     0.2 %
New York                                                            10,330                            16.8 %                                                        4,027                            96.5 %                                     4.3 %                                     4.0 %                                     4.4 %                                     4.6 %                                    (0.3 %)
San Francisco                                                       12,766                            15.5 %                                                        2,641                            96.5 %                                    10.3 %                                     0.7 %                                    14.4 %                                    10.6 %                                    (0.3 %)
Los Angeles                                                         11,811                            11.7 %                                                        2,331                            96.2 %                                     6.3 %                                     2.1 %                                     8.4 %                                     6.1 %                                     0.3 %
Boston                                                               7,722                             9.8 %                                                        2,891                            96.5 %                                     3.2 %                                     3.5 %                                     3.1 %                                     3.2 %                                     0.1 %
Seattle                                                              7,459                             6.8 %                                                        2,026                            95.9 %                                     7.6 %                                    (2.0 %)                                   12.0 %                                     7.2 %                                     0.4 %
San Diego                                                            3,505                             3.3 %                                                        2,111                            96.0 %                                     5.5 %                                     1.6 %                                     7.3 %                                     6.1 %                                    (0.5 %)
Orange County, CA                                                    3,490                             3.1 %                                     1,898                            96.1 %                                     4.7 %                                    (0.7 %)                                    6.7 %                                     5.2 %                                    (0.5 %)
                                                      --------------------                      ---------- ---------                      -------------------- ----------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------
Subtotal - Core                                        75,217                            84.3 %                                                        2,588                            96.1 %                                     5.0 %                                     1.8 %                                     6.5 %                                     5.0 %                                     0.0 %
                                                                                                                                                                                                                                                                                                                                                                                                                  
Non-Core:
South Florida                                                       10,666                             7.4 %                                                        1,702                            96.0 %                                     5.9 %                                     4.3 %                                     6.7 %                                     5.5 %                                     0.4 %
Denver                                                               6,935                             5.2 %                                                        1,571                            95.5 %                                     8.4 %                                    (1.4 %)                                   11.9 %                                     8.8 %                                    (0.3 %)
Inland Empire, CA                                                    2,751                             2.0 %                                                        1,653                            95.7 %                                     6.6 %                                     5.2 %                                     7.2 %                                     6.1 %                                     0.4 %
All Other Markets                                                    2,633                             1.1 %                                     1,188                            95.6 %                                     3.7 %                                     2.2 %                                     4.9 %                                     4.1 %                                    (0.4 %)
                                                      --------------------                      ---------- ---------                      -------------------- ----------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------
Subtotal - Non-Core                                    22,985                            15.7 %                                                        1,598                            95.8 %                                     6.5 %                                     2.8 %                                     8.3 %                                     6.4 %                                     0.1 %
                                                                                                                                                                                                                                                          
                                                      --------------------                      ---------------------                     --------------------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------
Total                                                               98,202                           100.0 %                                                 $      2,357                            96.0 %                                     5.2 %                                     2.0 %                                     6.8 %                                     5.2 %                                     0.0 %
                                                      ====================                      ========== =========                      ==================== ==========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========
                                                                                                                                                                                                                                                                                                                                                                                                                  
(1) Average rental rate is defined as total rental revenues divided
by the weighted average occupied apartment units for the period.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                          Equity Residential
                                                                                                                                                                                              Fourth Quarter 2015 vs. Third Quarter 2015
                                                                                                                                                                                                Same Store Results/Statistics by Market
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                     Increase (Decrease) from Prior Quarter
                                                                                                                                                                                                                                         ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Markets/Metro Areas                                  Apartment                                  Q4 2015                                         Q4 2015                                        Q4 2015                                  Revenues               Expenses                  NOI                  Average               Occupancy
                                                              Units                                     % of                                           Average                                       Weighted                                                                                                                                                                 Rental
                                                                                                       Actual                                          Rental                                         Average                                                                                                                                                                Rate (1)
                                                                                                         NOI                                          Rate (1)                                      Occupancy %
--------------------------------                      --------------------                      -------------------                       ------------------------------                       -------------------                       -------------------                       -------------------                       -------------------                       -------------------                       -------------------
                                                                                                                                                                                                                                                                                                                                                                                                                  
Core:
Washington DC                                                       18,494                            17.3 %                                                 $      2,223                            95.6 %                                    (1.3 %)                                   (6.8 %)                                    1.5 %                                    (0.7 %)                                   (0.6 %)
New York                                                            10,330                            16.4 %                                                        4,027                            96.5 %                                     0.0 %                                    (0.8 %)                                    0.5 %                                     0.2 %                                    (0.2 %)
San Francisco                                                       12,766                            15.2 %                                                        2,641                            96.5 %                                     1.5 %                                    (3.6 %)                                    3.5 %                                     1.6 %                                     0.0 %
Los Angeles                                                         12,343                            12.1 %                                                        2,352                            96.2 %                                     0.6 %                                    (1.7 %)                                    1.7 %                                     0.4 %                                     0.1 %
Boston                                                               7,924                            10.0 %                                                        2,902                            96.4 %                                     1.4 %                                    (4.6 %)                                    4.2 %                                     1.4 %                                     0.0 %
Seattle                                                              8,019                             7.2 %                                                        2,045                            95.8 %                                     0.5 %                                    (5.4 %)                                    3.1 %                                     0.1 %                                     0.3 %
San Diego                                                            3,505                             3.2 %                                                        2,111                            96.0 %                                    (0.2 %)                                   (2.8 %)                                    1.0 %                                     0.4 %                                    (0.5 %)
Orange County, CA                                                    3,490                             3.0 %                                     1,898                            96.1 %                                     0.3 %                                    (8.6 %)                                    3.8 %                                    (0.1 %)                                    0.3 %
                                                      --------------------                      ---------- ---------                      -------------------- ----------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------
Subtotal - Core                                        76,871                            84.4 %                                                        2,589                            96.1 %                                     0.3 %                                    (3.7 %)                                    2.2 %                                     0.4 %                                    (0.1 %)
                                                                                                                                                                                                                                                                                                                                                                                                                  
Non-Core:
South Florida                                                       10,934                             7.5 %                                                        1,703                            96.0 %                                     0.6 %                                    (4.8 %)                                    3.7 %                                     0.3 %                                     0.3 %
Denver                                                               6,935                             5.1 %                                                        1,571                            95.5 %                                     1.1 %                                   (13.4 %)                                    6.7 %                                     1.2 %                                    (0.2 %)
Inland Empire, CA                                                    2,751                             1.9 %                                                        1,653                            95.7 %                                     0.8 %                                     2.0 %                                     0.3 %                                     1.2 %                                    (0.4 %)
All Other Markets                                                    2,633                             1.1 %                                     1,188                            95.6 %                                     0.5 %                                    (2.5 %)                                    2.9 %                                     0.9 %                                    (0.4 %)
                                                      --------------------                      ---------- ---------                      -------------------- ----------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------
Subtotal - Non-Core                                    23,253                            15.6 %                                                        1,600                            95.8 %                                     0.7 %                                    (5.9 %)                                    4.1 %                                     0.8 %                                     0.0 %
                                                                                                                                                                                                                                                          
                                                      --------------------                      ---------------------                     --------------------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------
Total                                                              100,124                           100.0 %                                                 $      2,359                            96.0 %                                     0.4 %                                    (4.1 %)                                    2.5 %                                     0.4 %                                    (0.1 %)
                                                      ====================                      ========== =========                      ==================== ==========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========
                                                                                                                                                                                                                                                                                                                                                                                                                  
(1) Average rental rate is defined as total rental revenues divided
by the weighted average occupied apartment units for the period.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                          Equity Residential
                                                                                                                                                                                                             2015 vs. 2014
                                                                                                                                                                                                Same Store Results/Statistics by Market
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                       Increase (Decrease) from Prior Year
                                                                                                                                                                                                                                         ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
       Markets/Metro Areas                                  Apartment                                   2015                                            2015                                           2015                                    Revenues               Expenses                  NOI                  Average               Occupancy
                                                              Units                                     % of                                           Average                                       Weighted                                                                                                                                                                 Rental
                                                                                                       Actual                                          Rental                                         Average                                                                                                                                                                Rate (1)
                                                                                                         NOI                                          Rate (1)                                      Occupancy %
--------------------------------                      --------------------                      -------------------                       ------------------------------                       -------------------                       -------------------                       -------------------                       -------------------                       -------------------                       -------------------
                                                                                                                                                                                                                                                                                                                                                                                                                  
Core:
Washington DC                                                       17,745                            17.7 %                                                 $      2,232                            95.9 %                                     0.7 %                                     2.5 %                                    (0.1 %)                                    0.1 %                                     0.7 %
New York                                                            10,330                            17.3 %                                                        3,975                            96.6 %                                     4.2 %                                     3.6 %                                     4.6 %                                     3.9 %                                     0.3 %
San Francisco                                                       12,766                            15.5 %                                                        2,544                            96.5 %                                    10.5 %                                     1.5 %                                    14.6 %                                     9.9 %                                     0.5 %
Los Angeles                                                         10,641                            10.7 %                                                        2,241                            96.1 %                                     5.9 %                                     0.6 %                                     8.8 %                                     5.6 %                                     0.4 %
Boston                                                               7,722                             9.9 %                                                        2,834                            96.3 %                                     3.3 %                                     4.9 %                                     2.5 %                                     3.0 %                                     0.3 %
Seattle                                                              7,230                             6.6 %                                                        1,980                            95.7 %                                     7.3 %                                    (0.6 %)                                   11.1 %                                     7.1 %                                     0.1 %
San Diego                                                            3,505                             3.4 %                                                        2,067                            96.1 %                                     5.4 %                                     1.8 %                                     7.0 %                                     5.3 %                                     0.1 %
Orange County, CA                                                    3,490                             3.1 %                                     1,867                            96.0 %                                     5.1 %                                     2.2 %                                     6.2 %                                     5.1 %                                     0.0 %
                                                      --------------------                      ---------- ---------                      -------------------- ----------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------
Subtotal - Core                                        73,429                            84.2 %                                                        2,547                            96.2 %                                     4.9 %                                     2.4 %                                     6.2 %                                     4.5 %                                     0.4 %
                                                                                                                                                                                                                                                                                                                                                                                                                  
Non-Core:
South Florida                                                       10,538                             7.5 %                                                        1,674                            95.8 %                                     5.7 %                                     3.6 %                                     7.0 %                                     5.5 %                                     0.2 %
Denver                                                               6,935                             5.2 %                                                        1,519                            95.6 %                                     8.8 %                                     2.9 %                                    11.0 %                                     8.9 %                                    (0.2 %)
Inland Empire, CA                                                    2,751                             2.0 %                                                        1,616                            95.6 %                                     4.8 %                                     1.6 %                                     6.4 %                                     4.9 %                                    (0.1 %)
All Other Markets                                                    2,633                             1.1 %                                     1,168                            96.1 %                                     3.9 %                                     4.0 %                                     3.8 %                                     3.9 %                                    (0.1 %)
                                                      --------------------                      ---------- ---------                      -------------------- ----------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------                      ---------- ---------
Subtotal - Non-Core                                    22,857                            15.8 %                                                        1,562                            95.8 %                                     6.3 %                                     3.2 %                                     7.9 %                                     6.3 %                                     0.1 %
                                                                                                                                                                                                                                                          
                                                      --------------------                      ---------------------                     --------------------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------                     ---------------------
Total                                                               96,286                           100.0 %                                                 $      2,314                            96.1 %                                     5.1 %                                     2.5 %                                     6.5 %                                     4.8 %                                     0.3 %
                                                      ====================                      ========== =========                      ==================== ==========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========                      ========== =========
                                                                                                                                                                                                                                                                                                                                                                                                                  
(1) Average rental rate is defined as total rental revenues divided
by the weighted average occupied apartment units for the period.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                           Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                               Fourth Quarter 2015 vs. Fourth Quarter 2014
                                                                                                                      Same Store Operating Expenses for 98,202 Same Store Apartment
                                                                                                                                                  Units
                                                                                                                                             $ in thousands
 
                                                    Actual                            Actual                                       $                                    %                 % of Actual
                                                                       Q4 2015                                              Q4 2014                                                      Change                                                  Change                                    Q4 2015
                                                                                                                                                                                                                                                                                          Operating
                                                                                                                                                                                                                                                                                          Expenses
                                                          ------------------------------                       ------------------------------                       ----------------------------------------------                        -------------------                       -------------------
                                                                                                                                                                                                                                                                                     
Real estate taxes                                                            $     75,507                                         $     72,331                                         $  3,176                                                  4.4 %                                    36.3 %
On-site payroll (1)                                                                43,090                                               40,949                                            2,141                                                  5.2 %                                    20.7 %
Utilities (2)                                                                      28,590                                               29,529                                             (939 )                                               (3.2 %)                                   13.8 %
Repairs and maintenance (3)                                                        23,913                                               24,103                                             (190 )                                               (0.8 %)                                   11.5 %
Property management costs (4)                                                      19,993                                               18,997                                              996                                                  5.2 %                                     9.6 %
Insurance                                                                           5,468                                                6,136                                             (668 )                                              (10.9 %)                                    2.6 %
Leasing and advertising                                                             2,601                                                3,060                                             (459 )                                              (15.0 %)                                    1.3 %
Other on-site operating expenses (5)                             8,727                             8,755                           (28 )                                               (0.3 %)                                    4.2 %
                                                          -------------------- ----------                      -------------------- ----------                      -------------------- ------ --------------------                      ---------- ---------                      ---------- ---------
                                                                                                                                                                                                                                                                                     
Same store operating expenses                                                $    207,889                                         $    203,860                                         $  4,029                               2.0 %                                   100.0 %
                                                          ==================== ==========                      ==================== ==========                      ==================== ====== ====================                      ========== =========                      ========== =========
                                                                                       
------------------------------------ -------------------- ---------------------------------------------------- ---------------------------------------------------- --------------------------------------------------------------------- ----------------------------------------- ---------------------
 
                                                                                                                                              2015 vs. 2014
                                                                                                                      Same Store Operating Expenses for 96,286 Same Store Apartment
                                                                                                                                                  Units
                                                                                                                                             $ in thousands
 
                                                                       Actual                                               Actual                                                          $                                                       %                                    % of Actual
                                                                        2015                                                 2014                                                        Change                                                  Change                                     2015
                                                                                                                                                                                                                                                                                          Operating
                                                                                                                                                                                                                                                                                          Expenses
                                                          ------------------------------                       ------------------------------                       ----------------------------------------------                        -------------------                       -------------------
                                                                                                                                                                                                                                                                                     
Real estate taxes                                                            $    296,484                                         $    282,487                                         $ 13,997                                                  5.0 %                                    35.4 %
On-site payroll (1)                                                               174,950                                              171,706                                            3,244                                                  1.9 %                                    20.9 %
Utilities (2)                                                                     118,986                                              123,296                                           (4,310 )                                               (3.5 %)                                   14.2 %
Repairs and maintenance (3)                                                       104,033                                               98,168                                            5,865                                                  6.0 %                                    12.4 %
Property management costs (4)                                                      77,001                                               73,242                                            3,759                                                  5.1 %                                     9.2 %
Insurance                                                                          21,335                                               23,909                                           (2,574 )                                              (10.8 %)                                    2.6 %
Leasing and advertising                                                            10,370                                               10,605                                             (235 )                                               (2.2 %)                                    1.2 %
Other on-site operating expenses (5)                            34,721                            33,924                           797                               2.3 %                                     4.1 %
                                                          -------------------- ----------                      -------------------- ----------                      -------------------- ------ --------------------                      ---------- ---------                      ---------- ---------
                                                                                                                                                                                                                                                                                     
Same store operating expenses                                                $    837,880                                         $    817,337                                         $ 20,543                               2.5 %                                   100.0 %
                                                          ==================== ==========                      ==================== ==========                      ==================== ====== ====================                      ========== =========                      ========== =========
(1)   On-site payroll - Includes payroll and related expenses for on-site
                         personnel including property managers, leasing consultants and
                         maintenance staff.
(2)                      Utilities - Represents gross expenses prior to any recoveries under
                         the Resident Utility Billing System ("RUBS"). Recoveries are
                         reflected in rental income.
(3)                      Repairs and maintenance - Includes general maintenance costs,
                         apartment unit turnover costs including interior painting, routine
                         landscaping, security, exterminating, fire protection, snow removal,
                         elevator, roof and parking lot repairs and other miscellaneous
                         building repair costs.
(4)                      Property management costs - Includes payroll and related expenses
                         for departments, or portions of departments, that directly support
                         on-site management. These include such departments as regional and
                         corporate property management, property accounting, human resources,
                         training, marketing and revenue management, procurement, real estate
                         tax, property legal services and information technology.
(5)                      Other on-site operating expenses - Includes ground lease costs and
                         administrative costs such as office supplies, telephone and data
                         charges and association and business licensing fees.
 
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                       Equity Residential
---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                              Debt Summary as of December 31, 2015
                                                                                                     (Amounts in thousands)
 
                                                                        Amounts (1)              % of Total          Weighted         Weighted
                                                                                                                                                                               Average                             Average
                                                                                                                                                                              Rates (1)                          Maturities
                                                                                                                                                                                                                   (years)
                                                                              ----------------------------------                       ---------------                       --------                       --------------------
                                                                                                                                                                                                             
Secured                                                                                          $      4,704,870                                42.9 %                      4.23 %                                          6.9
Unsecured                                                                            6,263,628                                57.1 %                      4.73 %                                          8.2
                                                                              -------------------- --------------                      -------------- -                      ---- ----                      --------------------
                                                                                                                                                                                                             
      Total                                                                                      $     10,968,498                               100.0 %                      4.51 %                                          7.6
                                                                              ==================== ==============                      ============== =                      ==== ====                      ====================
                                                                                                                                                                                                             
Fixed Rate Debt:
   Secured - Conventional                                                           $      3,997,930                                36.5 %                      4.86 %                                          5.3
   Unsecured - Public                                                   5,423,012                                49.4 %                      5.30 %                                          9.2
                                                                              -------------------- --------------                      -------------- -                      ---- ----                      --------------------
                                                                                                                                                                                                             
      Fixed Rate Debt                                                                9,420,942                                85.9 %                      5.10 %                                          7.6
                                                                              -------------------- --------------                      -------------- -                      ---- ----                      --------------------
                                                                                                                                                                                                             
Floating Rate Debt:
   Secured - Conventional                                                                      7,985                                 0.1 %                      0.13 %                                         18.1
   Secured - Tax Exempt                                                                      698,955                                 6.3 %                      0.64 %                                         15.5
   Unsecured - Public (2)                                                                    453,340                                 4.2 %                      0.93 %                                          3.5
   Unsecured - Revolving Credit Facility                                              --                      --                        1.07 %                                          2.3
   Unsecured - Commercial Paper Program (3)                               387,276                                 3.5 %                      0.56 %                               --
                                                                              -------------------- --------------                      -------------- -                      ---- ----                      --------------------
                                                                                                                                                                                                             
      Floating Rate Debt                                                             1,547,556                                14.1 %                      0.75 %                                          8.1
                                                                              -------------------- --------------                      -------------- -                      ---- ----                      --------------------
                                                                                                                                                                                                             
Total                                                                                            $     10,968,498                               100.0 %                      4.51 %                                          7.6
                                                                              ==================== ==============                      ============== =                      ==== ====                      ====================
(1) Net of the effect of any derivative instruments. Weighted
average rates are for the year ended December 31, 2015.
(2) Fair value interest rate swaps convert the $450.0 million 2.375%
notes due July 1, 2019 to a floating interest rate of 90-Day LIBOR
plus 0.61%.
(3) As of December 31, 2015, the weighted average maturity on the
Company’s outstanding commercial paper was 19 days.
Note: The Company capitalized interest of approximately $59.9
million and $52.8 million during the years ended December 31, 2015
and 2014, respectively. The Company capitalized interest of
approximately $14.1 million and $14.7 million during the quarters
ended December 31, 2015 and 2014, respectively.
Note: The Company recorded approximately $8.6 million and $2.8
million of net debt discount/deferred derivative settlement
amortization as additional interest expense during the years ended
December 31, 2015 and 2014, respectively. The Company recorded
approximately $2.8 million of net debt discount/deferred derivative
settlement amortization as additional interest expense during the
quarter ended December 31, 2015. The Company recorded approximately
$0.7 million of net debt premium/deferred derivative settlement
amortization as a reduction to interest expense during the quarter
ended December 31, 2014.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                    Debt Maturity Schedule as of December 31, 2015
                                                                                                                                (Amounts in thousands)
 
       Year              Fixed       Floating              Total            % of Total      Weighted           Weighted
                                          Rate (1)                         Rate (1)                                                                                                                                            Average Rates                            Average
                                                                                                                                                                                                                                 on Fixed                              Rates on
                                                                                                                                                                                                                               Rate Debt (1)                        Total Debt (1)
------------------                      -----------                      -----------                                               ------------                                               ----------                      -------------                      --------------------
                                                                                                                                                                                                                                                                  
       2016                               $ 965,341                        $ 387,472                      (2)                       $ 1,352,813                      (3)                           12.3%                              5.33%                                     4.06%
       2017                               1,347,390                              456                                                  1,347,846                      (3)                           12.3%                              6.16%                                     6.16%
       2018                                  82,802                           97,659                                                    180,461                                                     1.7%                              5.59%                                     3.07%
       2019                                 806,705                          474,422                                                  1,281,127                                                    11.7%                              5.48%                                     3.75%
       2020                               1,678,623                              809                                                  1,679,432                                                    15.3%                              5.49%                                     5.49%
       2021                               1,195,251                              856                                                  1,196,107                                                    10.9%                              4.63%                                     4.63%
       2022                                 228,924                              905                                                    229,829                                                     2.1%                              3.16%                                     3.17%
       2023                               1,327,965                              956                                                  1,328,921                                                    12.1%                              3.74%                                     3.74%
       2024                                   2,497                            1,011                                                      3,508                                                     0.0%                              4.97%                                     5.14%
       2025                                 452,625                            1,069                                                    453,694                                                     4.1%                              3.38%                                     3.39%
       2026+                              1,319,792                          641,228                                                  1,961,020                                                    17.9%                              4.87%                                     3.41%
Premium/(Discount)                           13,027                         (59,287)                                                   (46,260)                                                   (0.4%)                                N/A                                       N/A
                                        -----------                      -----------                                               ------------                                               ----------                      -------------                      --------------------
                                                                                                                                                                                                                                                                  
       Total                            $ 9,420,942                      $ 1,547,556                                               $ 10,968,498                                                   100.0%                              4.97%                                     4.35%
                                        ===========                      ===========                                               ============                                               ==========                      =============                      ====================
(1) Net of the effect of any derivative instruments. Weighted
average rates are as of December 31, 2015.
(2) Represents the principal outstanding on the Company’s unsecured
commercial paper program. The Company may borrow up to a maximum of
$500.0 million on the program subject to market conditions. No
amounts remain outstanding under this program as of February 2, 2016.
(3) Following completion of the debt extinguishment activities as
described on page 3 and repayment of all outstanding commercial
paper balances, the Company will have approximately $336.6 million
and $605.0 million in debt maturing in 2016 and 2017, respectively.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                            Equity Residential
                                                                                                                                                              Unsecured Debt Summary as of December 31, 2015
                                                                                                                                                                          (Amounts in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                          Coupon        Due                                        Face                                                    Unamortized                                                    Net
                                                              Rate                           Date                                                                             Amount                                                                       Premium/                                                                       Balance
                                                                                                                                                                                                                                                          (Discount)
                                                          -----------                      --------                                                  ------------------------------------------------------                        ------------------------------------------------------                        ------------------------------------------------------
                                                                                                                                                                                                                                                                                                                  
Fixed Rate Notes:
                                                             5.125%                        03/15/16                        (5)                                          $        500,000                                                              $             (9 )                                                            $        499,991
                                                             5.375%                        08/01/16                        (5)                                                   400,000                                                                          (108 )                                                                     399,892
                                                             5.750%                        06/15/17                        (5)                                                   650,000                                                                          (763 )                                                                     649,237
                                                             7.125%                        10/15/17                        (5)                                                   150,000                                                                          (116 )                                                                     149,884
                                                             2.375%                        07/01/19                        (1)                                                   450,000                                                                          (315 )                                                                     449,685
Fair Value Derivative Adjustments                                                                                          (1)                                                  (450,000 )                                                                         315                                                                      (449,685 )
                                                             4.750%                        07/15/20                                                                              600,000                                                                        (2,060 )                                                                     597,940
                                                             4.625%                        12/15/21                        (5)                                                 1,000,000                                                                        (2,254 )                                                                     997,746
                                                             3.000%                        04/15/23                                                                              500,000                                                                        (3,226 )                                                                     496,774
                                                             3.375%                        06/01/25                                                                              450,000                                                                        (2,331 )                                                                     447,669
                                                             7.570%                        08/15/26                        (5)                                                   140,000                                                                --                                                                       140,000
                                                             4.500%                        07/01/44                                                                              750,000                                                                        (5,009 )                                                                     744,991
                                                             4.500%                        06/01/45                                                           300,000                                  (1,112 )                                                  298,888  
                                                                                                                                                     -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                            5,440,000                                 (16,988 )                                                5,423,012  
                                                                                                                                                     -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Floating Rate Notes:
                                                                                           07/01/19                        (1)                                                   450,000                                                                          (315 )                                                                     449,685
Fair Value Derivative Adjustments                                                          07/01/19                        (1)                                  3,655                          --                                   3,655  
                                                                                                                                                     -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                              453,655                                    (315 )                                                  453,340  
                                                                                                                                                     -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                  
Line of Credit and Commercial Paper:
Revolving Credit Facility                                  LIBOR+0.95%                     04/01/18                      (2)(3)                                           --                                                                --                                                                --
Commercial Paper Program                                       (4)                            (4)                          (2)                                387,472                                    (196 )                                                  387,276  
                                                                                                                                                     -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                              387,472                                    (196 )                                                  387,276  
                                                                                                                                                     -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                  
Total Unsecured Debt                                                                                                                                                    $      6,281,127                                           $        (17,499 )                                                            $      6,263,628  
                                                                                                                                                     ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
(1)   Fair value interest rate swaps convert the $450.0 million 2.375%
                         notes due July 1, 2019 to a floating interest rate of 90-Day LIBOR
                         plus 0.61%.
(2)                      Facility/program is private. All other unsecured debt is public.
(3)                      Represents the Company’s $2.5 billion unsecured revolving credit
                         facility maturing April 1, 2018. The interest rate on advances under
                         the credit facility will generally be LIBOR plus a spread (currently
                         0.95%) and an annual facility fee (currently 15 basis points). Both
                         the spread and the facility fee are dependent on the credit rating
                         of the Company’s long-term debt. As of December 31, 2015, there was
                         approximately $2.07 billion available on this facility (net of $45.1
                         million which was restricted/dedicated to support letters of credit
                         and net of $387.5 million outstanding on the commercial paper
                         program). As of February 2, 2016, there was approximately $2.47
                         billion available on this facility (net of $32.8 million which was
                         restricted/dedicated to support letters of credit).
(4)                      Represents the Company’s unsecured commercial paper program. The
                         Company may borrow up to a maximum of $500.0 million on this program
                         subject to market conditions. The notes bear interest at various
                         floating rates with a weighted average of 0.56% for the year ended
                         December 31, 2015 and a weighted average maturity of 19 days as of
                         December 31, 2015. No amounts remain outstanding under this program
                         as of February 2, 2016.
(5)                      All or a portion of these notes were repaid in conjunction with the
                         debt extinguishment activities as described on page 3.
 
--------------------------------------------------------------------------------------------------------------------------------------
                                                          Equity Residential
--------------------------------------------------------------------------------------------------------------------------------------
 
                                               Selected Unsecured Public Debt Covenants
                                                                          
                                                                               December 31,                          September 30,
                                                                                   2015                                  2015
                                                                               ------------                      --------------------
                                                                                                                  
Total Debt to Adjusted Total Assets (not to exceed 60%)                               38.5%                                     38.3%
                                                                                                                  
Secured Debt to Adjusted Total Assets (not to exceed 40%)                             16.5%                                     17.3%
                                                                                                                  
Consolidated Income Available for Debt Service to
    Maximum Annual Service Charges
    (must be at least 1.5 to 1)                                                        3.67                                      3.56
                                                                                                                  
Total Unsecured Assets to Unsecured Debt                                             336.8%                                    342.8%
    (must be at least 150%)
Note:   These selected covenants relate to ERP Operating Limited
                           Partnership’s ("ERPOP") outstanding unsecured public debt, which
                           represent the Company’s most restrictive covenants. Equity
                           Residential is the general partner of ERPOP.
 
---------------------------------------------------------------------------------------
                              Selected Credit Ratios (1)
 
                                December 31,       September 30,
                                    2015                                  2015
                                ------------                      --------------------
                                                                   
Total debt to Normalized EBITDA        6.14x                                     6.14x
                                                                   
Net debt to Normalized EBITDA          6.09x                                     6.09x
Note:   See page 24 for the footnote referenced above and the Normalized
                           EBITDA reconciliations.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                    Equity Residential
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                         Capital Structure as of December 31, 2015
                                                                                                                                            (Amounts in thousands except for share/unit and per share amounts)
 
   Secured Debt                                                                                                                                                       $  4,704,870    42.9 %    
   Unsecured Debt                                                                                                                                                                                                                                    6,263,628                       57.1 %
                                                                                                                                                                                                                                                  -------------------- ----------                      ----- ---
                                                                                                                                                                                                                                                                                                                                       
Total Debt                                                                                                                                                                                                                                                             10,968,498                      100.0 %                              26.2 %
                                                                                                                                                                                                                                                                                                                                       
   Common Shares (includes Restricted Shares)                                                                                                                364,755,444                                            96.2 %
   Units (includes OP Units and Restricted Units)                                                                                          14,427,164                          3.8 %
                                                                                                                                        -------------------- -----------                      -------------------- ----- ---
                                                                                                                                                                                                                                                                                                                                       
Total Shares and Units                                                                                                                                       379,182,608                                           100.0 %
Common Share Price at December 31, 2015                                                                                                                    $       81.59
                                                                                                                                        -------------------- -----------
                                                                                                                                                                                                                                                                       30,937,509                       99.9 %
Perpetual Preferred Equity (see below)                                                                                                                                                                                                                  37,280                        0.1 %
                                                                                                                                                                                                                                                  -------------------- ----------                      ----- ---
                                                                                                                                                                                                                                                                                                                                       
Total Equity                                                                                                                                                                                                                                                           30,974,789                      100.0 %                              73.8 %
                                                                                                                                                                                                                                                                                                                                       
Total Market Capitalization                                                                                                                                                                                                                                          $ 41,943,287                                                          100.0 %
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                    Perpetual Preferred Equity as of December 31, 2015
                                                                                                                                               (Amounts in thousands except for share and per share amounts)
 
                      Series                                           Redemption                       Outstanding                                Liquidation                                            Annual                                               Annual
                                                                          Date                            Shares                                      Value                                              Dividend                                             Dividend
                                                                                                                                                                                                         Per Share                                             Amount
-------------------------------------------------                      ----------                      -----------                      -------------------------------                       ----------------------------                        ------------------------------
                                                                                                                                                                                                                                                                                                                                       
Preferred Shares:
   8.29% Series K                                                       12/10/26                           745,600                                         $      37,280                                         $ 4.145                                             $      3,091
                                                                                                       -----------                      -------------------- -----------                                                                          -------------------- ----------
                                                                                                                                                                                                                                                                                                                                       
Total Perpetual Preferred Equity                                                                           745,600                                         $      37,280                                                                                             $      3,091
(1)   Effective November 12, 2015, the Company repurchased and retired
                         58,000 Series K Preferred Shares with a par value of $2.9 million
                         for total cash consideration of approximately $3.6 million. As a
                         result of this partial redemption, the Company incurred a cash
                         charge of approximately $0.7 million which was recorded as a premium
                         on the redemption of preferred shares but did not impact Normalized
                         FFO.
 
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                             Equity Residential
                                                                                            Common Share and Unit
                                                                                    Weighted Average Amounts Outstanding
-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                           
                                                                                         2015                             2014                            Q4 2015                              Q4 2014
                                                                                     -----------                      -----------                      -----------                      --------------------
                                                                                                                                                                                         
Weighted Average Amounts Outstanding for Net Income Purposes:
Common Shares - basic                                                                363,497,518                      361,181,497                      363,827,809                               362,017,851
   Shares issuable from assumed conversion/vesting of:
      - OP Units                                                                      13,575,927                       13,717,844                       13,552,095                                13,692,848
      - long-term compensation shares/units                                            3,546,058                        2,836,034                        3,839,809                                 3,174,890
                                                                                     -----------                      -----------                      -----------                      --------------------
                                                                                                                                                                                         
   Total Common Shares and Units - diluted                                           380,619,503                      377,735,375                      381,219,713                               378,885,589
                                                                                     ===========                      ===========                      ===========                      ====================
                                                                                                                                                                                         
Weighted Average Amounts Outstanding for FFO and Normalized FFO
Purposes:
   Common Shares - basic                                                             363,497,518                      361,181,497                      363,827,809                               362,017,851
   OP Units - basic                                                                   13,575,927                       13,717,844                       13,552,095                                13,692,848
                                                                                     -----------                      -----------                      -----------                      --------------------
                                                                                                                                                                                         
   Total Common Shares and OP Units - basic                                          377,073,445                      374,899,341                      377,379,904                               375,710,699
   Shares issuable from assumed conversion/vesting of:
      - long-term compensation shares/units                                            3,546,058                        2,836,034                        3,839,809                                 3,174,890
                                                                                     -----------                      -----------                      -----------                      --------------------
                                                                                                                                                                                         
   Total Common Shares and Units - diluted                                           380,619,503                      377,735,375                      381,219,713                               378,885,589
                                                                                     ===========                      ===========                      ===========                      ====================
                                                                                                                                                                                         
Period Ending Amounts Outstanding:
   Common Shares (includes Restricted Shares)                                        364,755,444                      362,855,454
   Units (includes OP Units and Restricted Units)                                     14,427,164                       14,298,691
                                                                                     -----------                      -----------
                                                                                                                                                                                         
   Total Shares and Units                                                            379,182,608                      377,154,145
                                                                                     ===========                      ===========
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                Equity Residential
                                                                                 Partially Owned Entities as of December 31, 2015
                                                                       (Amounts in thousands except for project and apartment unit amounts)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                  
                                                                                                     Consolidated                                                             Unconsolidated
                                                                                  --------------------------------------------------                     ---------------------------------------------------------
                                                                                                       Operating                                                                 Operating
                                                                                  -----------------------------------------------                        ------------------------------------------------------
                                                                                                                                                          
Total projects                                                                           19                                       3  
                                                                                  -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                          
Total apartment units                                                                 3,771                                   1,281  
                                                                                  -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                          
Operating information for the year ended 12/31/15 (at 100%):
   Operating revenue                                                                                 $  94,349                                                              $         32,285
   Operating expenses                                                                26,081                                  12,061  
                                                                                  -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                          
   Net operating income                                                                                 68,268                                                                        20,224
   Depreciation                                                                                         22,216                                                                        12,350
   General and administrative/other                                                     330                                     255  
                                                                                  -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                          
   Operating income                                                                                     45,722                                                                         7,619
   Interest and other income                                                                                12                                                                            (1 )
   Other expenses                                                                                          (50 )                                                              --
   Interest:
      Expense incurred, net                                                                            (15,459 )                                                                      (9,390 )
      Amortization of deferred financing costs                                         (349 )                                                       (2 )
                                                                                  -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                          
   Income (loss) before income and other taxes and (loss)
    from investments in unconsolidated entities                                                         29,876                                                                        (1,774 )
   Income and other tax (expense) benefit                                                                  (35 )                                                                         (18 )
   (Loss) from investments in unconsolidated entities                                (1,501 )                                           --  
                                                                                  -------------------- ------- --------------------                      -------------------- -------------- --------------------
   Net income (loss)                                                                                 $  28,340                                           $         (1,792 )
                                                                                  ==================== ======= ====================                      ==================== ============== ====================
                                                                                                                                                          
Debt - Secured (1):
      EQR Ownership (2)                                                                              $ 266,414                                                              $         34,969
      Noncontrolling Ownership                                                       77,015                                 139,877  
                                                                                  -------------------- ------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                          
Total (at 100%)                                                                                      $ 343,429                                           $        174,846  
                                                                                  ==================== ======= ====================                      ==================== ============== ====================
(1)     All debt is non-recourse to the Company.
(2)                        Represents the Company’s current equity ownership interest.
Note:                      The above table excludes the Company’s interests in unconsolidated
                           joint ventures entered into with AvalonBay Communities, Inc. ("AVB")
                           in connection with the acquisition of certain real estate related
                           assets from Archstone Enterprise LP (such assets are referred to
                           herein as "Archstone"). These ventures owned certain non-core
                           Archstone assets and succeeded to certain residual Archstone
                           liabilities/litigation, as well as responsibility for tax protection
                           arrangements and third-party preferred interests in former Archstone
                           subsidiaries. The preferred interests had an aggregate liquidation
                           value of $42.2 million at December 31, 2015. The ventures are owned
                           60% by the Company and 40% by AVB.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     Development and Lease-Up Projects as of December 31, 2015
                                                                                                                                                                                                                                     (Amounts in thousands except for project and apartment unit amounts)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Projects                                               Location                   No. of                        Total                             Total                            Total Book                               Total                                      Percentage                                              Percentage                             Percentage       Estimated      Estimated
                                                                                                                       Apartment                                        Capital                                            Book Value                                              Value Not                                                  Debt                                                           Completed                                                                   Leased                                                   Occupied                          Completion                       Stabilization
                                                                                                                         Units                                         Cost (1)                                              to Date                                               Placed in                                                                                                                                                                                                                                                                                           Date                              Date
                                                                                                                                                                                                                                                                                    Service
----------------------------------------------------                      -----------------                      --------------------                      ------------------------------                       ------------------------------                       ----------------------------------                       ----------------------------------                       -------------------------------------------------                        ------------------------------------------------------                        ---------------                       ----------                      -------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Projects Under Development:
----------------------------------------------------
Potrero 1010                                                              San Francisco, CA                                       453                                         $    224,474                                         $    174,741                                         $        174,741                                         $ --                                                  75 %                                                              --                                           --                          Q2 2016                           Q3 2017
Vista 99 (formerly Tasman)                                                San Jose, CA                                            554                                              214,923                                              191,153                                                  116,624                                           --                                                  94 %                                                                          20 %                                                     16 %                        Q2 2016                           Q2 2018
Altitude (formerly Village at Howard Hughes)                              Los Angeles, CA                                         545                                              193,231                                              153,993                                                  153,993                                           --                                                  74 %                                                              --                                           --                          Q3 2016                           Q2 2017
The Alton (formerly Millikan)                                             Irvine, CA                                              344                                              102,331                                               75,416                                                   75,416                                           --                                                  58 %                                                              --                                           --                          Q3 2016                           Q3 2017
340 Fremont (formerly Rincon Hill)                                        San Francisco, CA                                       348                                              287,454                                              218,851                                                  218,851                                           --                                                  82 %                                                              --                                           --                          Q3 2016                           Q1 2018
One Henry Adams                                                           San Francisco, CA                                       241                                              172,337                                               89,907                                                   89,907                                           --                                                  44 %                                                              --                                           --                          Q1 2017                           Q4 2017
455 I St                                                                  Washington, DC                                          174                                               73,157                                               28,977                                                   28,977                                           --                                                  13 %                                                              --                                           --                          Q3 2017                           Q2 2018
855 Brannan (formerly 801 Brannan)                                        San Francisco, CA                                       449                                              304,035                                              100,482                                                  100,482                                           --                                                  19 %                                                              --                                           --                          Q3 2017                           Q1 2019
2nd & Pine (2)                                                            Seattle, WA                                             398                                              214,742                                               95,681                                                   95,681                                           --                                                  34 %                                                              --                                           --                          Q3 2017                           Q2 2019
Cascade                                                                   Seattle, WA                                             483                                              172,486                                               67,704                                                   67,704                                           --                                                  28 %                                                              --                                           --                          Q3 2017                           Q2 2019
                                                                                                                                                                                                                                                   
                                                                                                                 --------------------                      --------------------------------                     --------------------------------                     ------------------------------------                     ------------------------------------
Projects Under Development                                                                                                      3,989                         1,959,170                         1,196,905                             1,122,376                        --
                                                                                                                 --------------------                      -------------------- ----------                      -------------------- ----------                      -------------------- --------------                      -------------------- --------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Completed Not Stabilized (3):
----------------------------------------------------
Prism at Park Avenue South                                                New York, NY                                            269                                              245,161                                              239,992                                           --                                           --                                                                                                                                91 %                                                     90 %                       Completed                          Q1 2016
170 Amsterdam (4)                                                         New York, NY                                            236                                              111,892                                              111,609                                           --                                           --                                                                                                                                76 %                                                     71 %                       Completed                          Q2 2016
Azure (at Mission Bay)                                                    San Francisco, CA                                       273                                              187,390                                              183,455                                           --                                           --                                                                                                                                71 %                                                     70 %                       Completed                          Q2 2016
Junction 47 (formerly West Seattle)                                       Seattle, WA                                             206                                               67,112                                               66,115                                           --                                           --                                                                                                                                79 %                                                     75 %                       Completed                          Q3 2016
Odin (formerly Tallman)                                                   Seattle, WA                                             301                                               81,777                                               79,909                                           --                                           --                                                                                                                                57 %                                                     52 %                       Completed                          Q4 2016
                                                                                                                                                                                                                                                   
                                                                                                                 --------------------                      --------------------------------                     --------------------------------                     ------------------------------------                     ------------------------------------
Projects Completed Not Stabilized                                                                                               1,285                           693,332                           681,080                        --                        --
                                                                                                                 --------------------                      -------------------- ----------                      -------------------- ----------                      -------------------- --------------                      -------------------- --------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Completed and Stabilized During the
Quarter:
----------------------------------------------------
Residences at Westgate II (formerly Westgate III)                         Pasadena, CA                                             88                                               54,287                                               52,083                                           --                                           --                                                                                                                                99 %                                                     99 %                       Completed                        Stabilized
Parc on Powell (formerly 1333 Powell)                                     Emeryville, CA                                          173                                               87,500                                               82,975                                           --                                           --                                                                                                                                98 %                                                     97 %                       Completed                        Stabilized
                                                                                                                                                                                                                                                   
                                                                                                                 --------------------                      --------------------------------                     --------------------------------                     ------------------------------------                     ------------------------------------
Projects Completed and Stabilized During the Quarter                                                                              261                           141,787                           135,058                        --                        --
                                                                                                                 --------------------                      -------------------- ----------                      -------------------- ----------                      -------------------- --------------                      -------------------- --------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Total Development Projects                                                                                                      5,535                                         $  2,794,289                                         $  2,013,043                                         $      1,122,376                                         $ --
                                                                                                                 ====================                      ==================== ==========                      ==================== ==========                      ==================== ==============                      ==================== ==============
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Land Held for Development                                                                                                         N/A                               N/A                                         $    168,843                                         $        168,843                                         $ --
                                                                                                                 ====================                      ==================== ==========                      ==================== ==========                      ==================== ==============                      ==================== ==============
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
NOI CONTRIBUTION FROM DEVELOPMENT PROJECTS                                                                                                                                                                                                                                                                                                                                                                 Total Capital                                                                 Q4 2015
                                                                                                                                                                                                                                                                                                                                                                                                             Cost (1)                                                                      NOI
                                                                                                                                                                                                                                                                                                                                                                                       -------------------------------------------------                        ------------------------------------------------------
Projects Under Development                                                                                                                                                                                                                                                                                                                                                                                $ 1,959,170                                                              $            (27 )
Completed Not Stabilized                                                                                                                                                                                                                                                                                                                                                                                      693,332                                                                         3,980
Completed and Stabilized During the Quarter                                                                                                                                                                                                                                                                                                                                                141,787                                   1,608  
                                                                                                                                                                                                                                                                                                                                                                                       -------------------- --------- --------------------                      -------------------- -------------- --------------------
      Total Development NOI Contribution                                                                                                                                                                                                                                                                                                                                                                  $ 2,794,289                                           $          5,561  
                                                                                                                                                                                                                                                                                                                                                                                       ==================== ========= ====================                      ==================== ============== ====================
Note: All development projects listed are wholly owned by the
Company.
(1)                    Total capital cost represents estimated cost for projects under
                                          development and/or developed and all capitalized costs incurred to
                                          date plus any estimates of costs remaining to be funded for all
                                          projects, all in accordance with GAAP.
(2)                                       2nd & Pine - Includes an adjacent land parcel on which certain
                                          improvements including a portion of a parking structure will be
                                          constructed as part of the development of this project. The Company
                                          may eventually construct an additional apartment tower on this site
                                          or sell a portion of the garage and the related air rights.
(3)                                       Properties included here are substantially complete. However, they
                                          may still require additional exterior and interior work for all
                                          apartment units to be available for leasing.
(4)                                       170 Amsterdam - The land under this project is subject to a long
                                          term ground lease.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     Repairs and Maintenance Expenses and Capital Expenditures to Real
                                                                                                                                                                                                                                     Estate
                                                                                                                                                                                                                                     For the Year Ended December 31, 2015
                                                                                                                                                                                                                                     (Amounts in thousands except for apartment unit and per apartment
                                                                                                                                                                                                                                     unit amounts)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                             
                                                                                                                                Repairs and Maintenance Expenses                                                                                                                                                                                              Capital Expenditures to Real Estate                                                                                                                                                                                  Total Expenditures
                                                                                       -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                                     --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                                               -------------------------------------------------------------
                                                        Total                                   Expense (2)            Avg. Per             Payroll (3)           Avg. Per               Total                                  Avg. Per                               Replacements            Avg. Per              Building             Avg. Per                Total               Avg. Per                                                          Grand               Avg. Per
                                                      Apartment                                                                           Apartment                                                                        Apartment                                                                        Apartment                                   (4)                                   Apartment                              Improvements                              Apartment                                                                         Apartment                                                                            Total                                  Apartment
                                                      Units (1)                                                                             Unit                                                                             Unit                                                                             Unit                                                                              Unit                                      (5)                                    Unit                                                                              Unit                                                                                                                        Unit
                                                   --------------                      ---------------------------                       ---------                       --------------------------                       --------                       ---------------------------                       ---------                       ---------------------------                       ---------                       --------------------------                       ---------                       ---------------------------                       ---------                       --------------------                      ---------------------------                       ---------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Same Store Properties (6)                                  96,286                                         $ 104,033                         $ 1,081                                         $ 84,484                         $  877                                         $ 188,517                         $ 1,958                                         $  98,120                         $ 1,019                                         $ 75,294                         $   782                                         $ 173,414                         $ 1,801                                       (9)                                         $ 361,931                         $ 3,759
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Non-Same Store Properties (7)                               6,946                                             4,667                             836                                            3,563                            639                                             8,230                           1,475                                             1,870                             335                                            6,293                           1,127                                             8,163                           1,462                                                                                      16,393                           2,937
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Other (8)                                          --                          1,061                                                           821                                                         1,882                                                            302                                                           234                                                            536                                                                                                    2,418
                                                   --------------                      -------------------- -------                                                      -------------------- ------                                                     -------------------- -------                                                      -------------------- -------                                                      -------------------- ------                                                      -------------------- -------                                                                                                -------------------- -------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Total                                                     103,232                                         $ 109,761                                                                         $ 88,868                                                                        $ 198,629                                                                         $ 100,292                                                                         $ 81,821                                                                         $ 182,113                                                                                                                   $ 380,742
                                                   ==============                      ==================== =======                                                      ==================== ======                                                     ==================== =======                                                      ==================== =======                                                      ==================== ======                                                      ==================== =======                                                                                                ==================== =======
(1)   Total Apartment Units - Excludes 1,281 unconsolidated apartment
                         units and 5,139 military housing apartment units for which repairs
                         and maintenance expenses and capital expenditures to real estate are
                         self-funded and do not consolidate into the Company’s results.
                          
(2)                      Repairs and Maintenance Expenses - Includes general maintenance
                         costs, apartment unit turnover costs including interior painting,
                         routine landscaping, security, exterminating, fire protection, snow
                         removal, elevator, roof and parking lot repairs and other
                         miscellaneous building repair costs.
                          
(3)                      Maintenance Payroll - Includes payroll and related expenses for
                         maintenance staff.
                          
(4)                      Replacements - Includes new expenditures inside the apartment units
                         such as appliances, mechanical equipment, fixtures and flooring,
                         including carpeting. Replacements for same store properties also
                         include $60.6 million spent in 2015 on apartment unit
                         renovations/rehabs (primarily kitchens and baths) on 6,499 same
                         store apartment units (equating to approximately $9,300 per
                         apartment unit rehabbed) designed to reposition these assets for
                         higher rental levels in their respective markets. In 2016, the
                         Company expects to spend approximately $40.0 million for all unit
                         renovation/rehab costs (primarily on same store properties) at a
                         weighted average cost of $10,000 per apartment unit rehabbed.
                          
(5)                      Building Improvements - Includes roof replacement, paving, amenities
                         and common areas, building mechanical equipment systems, exterior
                         painting and siding, major landscaping, vehicles and office and
                         maintenance equipment.
                          
(6)                      Same Store Properties - Primarily includes all properties acquired
                         or completed and stabilized prior to January 1, 2014, less
                         properties subsequently sold.
                          
(7)                      Non-Same Store Properties - Primarily includes all properties
                         acquired during 2014 and 2015, plus any properties in lease-up and
                         not stabilized as of January 1, 2014. Per apartment unit amounts are
                         based on a weighted average of 5,582 apartment units.
                          
(8)                      Other - Primarily includes expenditures for properties sold and
                         properties under development.
                          
(9)                      Based on the approximately 70,000 apartment units expected to be
                         included in same store properties by December 31, 2016, the Company
                         estimates that it will spend approximately $2,200 per apartment unit
                         of capital expenditures, inclusive of apartment unit
                         renovation/rehab costs, or $1,600 per apartment unit excluding
                         apartment unit renovation/rehab costs during 2016.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                     Equity Residential
                                                                                                                                                                                                                                     Normalized EBITDA Reconciliations
                                                                                                                                                                                                                                     (Amounts in thousands)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                                     Normalized EBITDA Reconciliations for Page 18
                                                                                                                                                                                                                                                                                                                                                                                                                                 
                                                                                         -----------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------
                                                                                                                                               Trailing Twelve Months                                                                                                                                                                                                                           2015                                                                                                                                                                                               2014
                                                                                         -----------------------------------------------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------
                                                                                                             December 31, 2015                                       September 30, 2015                                                                  Q4                                                         Q3                                                         Q2                                                         Q1                                                                            Q4
                                                                                         ---------------------------------------------------------                     -----------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
Net income                                                                                                  $        908,018                                                              $    921,339                                                              $        213,720                                                              $        205,456                                                              $        298,618                                                              $        190,224                                                              $        227,041
Interest expense incurred, net                                                                                       444,069                                                                   443,589                                                                       110,447                                                                       114,205                                                                       110,795                                                                       108,622                                                                       109,967
Amortization of deferred financing costs                                                                              10,801                                                                    10,268                                                                         3,067                                                                         2,607                                                                         2,538                                                                         2,589                                                                         2,534
Depreciation                                                                                                         765,895                                                                   777,951                                                                       181,033                                                                       196,059                                                                       194,282                                                                       194,521                                                                       193,089
Income and other tax expense (benefit) (includes discontinued                                                            932                                                                       956                                                                           219                                                                           329                                                                           326                                                                            58                                                                           243
operations)
Property acquisition costs (other expenses)                                                                            1,008                                                                       281                                                                           804                                                                            27                                                                            78                                                                            99                                                                            77
Write-off of pursuit costs (other expenses)                                                                            3,208                                                                     3,862                                                                           886                                                                           671                                                                         1,158                                                                           493                                                                         1,540
(Income) loss from investments in unconsolidated entities                                                            (15,025 )                                                                 (16,637 )                                                                        (637 )                                                                       1,041                                                                       (12,466 )                                                                      (2,963 )                                                                      (2,249 )
Net loss (gain) on sales of land parcels                                                                                   1                                                                    (3,430 )                                                              --                                                                --                                                                --                                                                             1                                                                        (3,431 )
(Gain) on sale of investment securities and other investments                                                           (526 )                                                                    (387 )                                                                        (139 )                                                              --                                                                          (387 )                                                              --                                                                --
(interest and other income)
Executive compensation program duplicative costs and retirement                                                       11,976                                                                     9,640                                                                         2,336                                                                         4,967                                                                         2,336                                                                         2,337                                                                --
benefit obligations
Forfeited deposits (interest and other income)                                                                --                                                                      (150 )                                                              --                                                                --                                                                --                                                                --                                                                          (150 )
Insurance/litigation settlement or reserve income (interest and                                                       (5,977 )                                                                  (5,802 )                                                                        (207 )                                                              --                                                                        (5,770 )                                                              --                                                                           (32 )
other income)
Insurance/litigation settlement or reserve expense (other expenses)                                                   (2,796 )                                                                    (867 )                                                                      (1,929 )                                                                          21                                                                           112                                                                        (1,000 )                                                              --
Other (interest and other income)                                                                                       (302 )                                                                  (1,052 )                                                              --                                                                          (108 )                                                                        (194 )                                                              --                                                                          (750 )
Net loss on sales of discontinued operations                                                                  --                                                                        44                                                                --                                                                --                                                                --                                                                --                                                                            44
Net (gain) on sales of real estate properties                                                    (335,134 )                                             (379,833 )                                                  (39,442 )                                                  (66,939 )                                                 (148,802 )                                                  (79,951 )                                                  (84,141 )
                                                                                         -------------------- -------------- --------------------                      -------------------- ---------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Normalized EBITDA (1)                                                                                       $      1,786,148                                           $  1,759,772                                           $        470,158                                           $        458,336                                           $        442,624                                           $        415,030                                           $        443,782  
                                                                                         ==================== ============== ====================                      ==================== ========== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
Balance Sheet Items:                                                                                         December 31, 2015                                                          September 30, 2015
-------------------------------------------------------------------                      ------------------------------------------------------                        --------------------------------------------------
Total debt (1)                                                                                              $     10,968,498                                                              $ 10,803,319
Cash and cash equivalents                                                                                            (42,276 )                                                                 (37,366 )
Mortgage principal reserves/sinking funds                                                         (50,155 )                                              (47,902 )
                                                                                         -------------------- -------------- --------------------                      -------------------- ---------- --------------------
Net debt (1)                                                                                                $     10,876,067                                           $ 10,718,051  
                                                                                         ==================== ============== ====================                      ==================== ========== ====================
(1) Normalized EBITDA, total debt to Normalized EBITDA and net debt
to Normalized EBITDA are important metrics in evaluating the credit
strength of the Company and its ability to service its debt
obligations. The Company believes that Normalized EBITDA, total debt
to Normalized EBITDA and net debt to Normalized EBITDA are useful to
investors, creditors and rating agencies because they allow
investors to compare the Company’s credit strength to prior
reporting periods and to other companies without the effect of items
that by their nature are not comparable from period to period and
tend to obscure the Company’s actual credit quality.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                 Equity Residential
                                                          Normalized FFO Guidance Reconciliations and Non-Comparable Items
                                                                    (Amounts in thousands except per share data)
                                                                           (All per share data is diluted)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                       Normalized FFO Guidance Reconciliations
 
                                                                                                     Normalized
                                                                                                                    FFO Reconciliations
                                                                                                                     Guidance Q4 2015
                                                                                                                     to Actual Q4 2015
                                                                       -------------------------------------------------------------------------------------------------------------
                                                                                   Amounts                                      Per Share
                                                                       -------------------------------                     ---------------------------------------------------------
Guidance Q4 2015 Normalized FFO - Diluted (2) (3)                                         $ 348,808                                           $          0.916
Property NOI                                                                                  5,173                                                      0.013
General and administrative expense                                                           (1,879 )                                                   (0.005 )
Interest expense                                                                                727                                                      0.002
Other                                                                        224                          --  
                                                                       -------------------- -------                        -------------------- -------------- --------------------
Actual Q4 2015 Normalized FFO - Diluted (2) (3)                                           $ 353,053                                           $          0.926  
                                                                       -------------------- -------                        -------------------- -------------- --------------------
                                                                                                                                                                                                                                      
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                                                                                                                                                     Non-Comparable Items - Adjustments from FFO to Normalized FFO (2)
                                                                                                                                                                                                                                     (3)
 
                                                                                                                                                                                    Year Ended December 31,                                                                                                                                                                                              Quarter Ended December 31,
                                                                                                        ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  2015                                                       2014                                                     Variance                                                                        2015                                                       2014                                                     Variance
                                                                                                        ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
Impairment                                                                                                                 $ --                                           $ --                                           $ --                                           $ --                                           $ --                                           $ --  
                                                                                                        -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Asset impairment and valuation allowances                                                                 --                          --                          --                          --                          --                          --  
                                                                                                        -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Archstone indirect costs ((income) loss from investments in                                                                         (15,922 )                                                                       4,287                                                                       (20,209 )                                                                         551                                                                        (2,083 )                                                                       2,634
unconsolidated entities) (A)
Property acquisition costs (other expenses)                                                                                           1,008                                                                           354                                                                           654                                                                           804                                                                            77                                                                           727
Write-off of pursuit costs (other expenses)                                                                        3,208                                   3,607                                    (399 )                                                      886                                   1,540                                    (654 )
                                                                                                        -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Property acquisition costs and write-off of pursuit costs                                                        (11,706 )                                                    8,248                                 (19,954 )                                                    2,241                                    (466 )                                                    2,707  
                                                                                                        -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Prepayment premiums/penalties (interest expense)                                                                             --                                                                           250                                                                          (250 )                                                              --                                                                           250                                                                          (250 )
Write-off of unamortized deferred financing costs (interest expense)                                                                    594                                                                           614                                                                           (20 )                                                                         506                                                                            10                                                                           496
Write-off of unamortized (premiums)/discounts/OCI (interest expense)                                                                 (1,379 )                                                                      (1,883 )                                                                         504                                                                --                                                                        (1,883 )                                                                       1,883
Loss (gain) due to ineffectiveness of forward starting swaps                                                                          3,003                                                                           (91 )                                                                       3,094                                                                --                                                                --                                                                --
(interest expense)
Premium on redemption of Preferred Shares                                                                          3,486                          --                                   3,486                                     697                          --                                     697  
                                                                                                        -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Debt extinguishment (gains) losses, including prepayment penalties,                                                5,704                                  (1,110 )                                                    6,814                                   1,203                                  (1,623 )                                                    2,826  
preferred share
redemptions and non-cash convertible debt discounts
                                                                                                        -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Net loss (gain) on sales of land parcels                                                                                                  1                                                                        (5,277 )                                                                       5,278                                                                --                                                                        (3,431 )                                                                       3,431
Net (gain) loss on sales of unconsolidated entities - non-operating                                                     (2,358 )                                                                       3,468                                                                        (5,826 )                                                                      (2,016 )                                                                       3,468                                                                        (5,484 )
assets
(Gain) on sale of investment securities and other investments                                                       (526 )                                                      (57 )                                                     (469 )                                                     (139 )                                           --                                    (139 )
(interest and other income)
                                                                                                        -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
(Gains) losses on sales of non-operating assets, net of income and                                                (2,883 )                                                   (1,866 )                                                   (1,017 )                                                   (2,155 )                                                       37                                  (2,192 )
other tax expense (benefit)
                                                                                                        -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
Write-off of unamortized retail lease intangibles (rental income)                                                            --                                                                          (147 )                                                                         147                                                                --                                                                --                                                                --
Executive compensation program duplicative costs and retirement                                                                      11,976                                                                --                                                                        11,976                                                                         2,336                                                                --                                                                         2,336
benefit obligations (B)
Forfeited deposits (interest and other income)                                                                               --                                                                          (150 )                                                                         150                                                                --                                                                          (150 )                                                                         150
Insurance/litigation settlement or reserve income (interest and                                                                      (5,977 )                                                                      (2,793 )                                                                      (3,184 )                                                                        (207 )                                                                         (32 )                                                                        (175 )
other income)
Insurance/litigation settlement or reserve expense (other expenses)                                                                  (2,796 )                                                                       4,099                                                                        (6,895 )                                                                      (1,929 )                                                              --                                                                        (1,929 )
Other (interest and other income)                                                                                   (302 )                                                     (750 )                                                      448                          --                                    (750 )                                                      750  
                                                                                                        -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
Other miscellaneous non-comparable items                                                                           2,901                                     259                                   2,642                                     200                                    (932 )                                                    1,132  
                                                                                                        -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                        ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------                     ---------------------------------------------------------
Non-comparable items - Adjustments from FFO to Normalized FFO (2) (3)                                         $         (5,984 )                                                            $          5,531                                           $        (11,515 )                                                            $          1,489                                           $         (2,984 )                                                            $          4,473  
                                                                                                        ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================                      ==================== ============== ====================
(A) Archstone indirect costs primarily includes the Company’s 60%
share of winddown costs for such items as office leases, litigation
and German operations/sales that were incurred indirectly through
the Company’s interest in various unconsolidated joint ventures with
AVB. During the year ended December 31, 2015, the amount also
includes approximately $18.6 million related to the favorable
settlement of a lawsuit.
(B) Primarily represents the accounting cost associated with the
Company’s new performance based executive compensation program. The
Company is required to expense in 2015 a portion of both the
previous program’s time based equity grants for service in 2014 and
the performance based grants issued under the new program, creating
a duplicative charge. Of this amount, $1.3 million and $8.0 million
has been recorded to property management expense and general and
administrative expense, respectively, for the year ended December
31, 2015 and $0.3 million and $2.0 million has been recorded to
property management expense and general and administrative expense,
respectively, for the quarter ended December 31, 2015. Also includes
$2.6 million recorded to general and administrative expense during
the year ended December 31, 2015 as a result of certain adjustments
for retirement benefit obligations.
Note: See page 27 for the definitions, the footnotes referenced
above and the reconciliations of EPS to FFO and Normalized FFO.
 
--------------------------------------------------------------------------------------------------------------------------------------------
                                                             Equity Residential
                                                   Normalized FFO Guidance and Assumptions
----------------------------------------------------------------------------------------------------------------------------------------
 
The guidance/projections provided below are based on current
expectations and are forward-looking. All guidance is given on a
Normalized FFO basis. Therefore, certain items excluded from
Normalized FFO, such as debt extinguishment costs/prepayment
penalties, property acquisition costs and the write-off of pursuit
costs, are not included in the estimates provided on this page.
All proposed dividends provided below remain subject to the
discretion of the Company’s Board of Trustees. The proposed
special dividends provided below may vary materially due to, among
other items, the amount and timing of 2016 dispositions. See page
27 for the definitions, the footnotes referenced below and the
reconciliations of EPS to FFO and Normalized FFO.
 
 
                                                   2016 Normalized FFO Guidance (per share
                                                                  diluted)
----------------------------------------------------------------------------------------------------------------------------------------
                                                                                       
                                                                          Q1 2016                                        2016
                                                                    -----------------                      --------------------------------
                                                                                                            
Expected Normalized FFO (2) (3)                                       $0.73 to $0.77                                $3.00 to $3.20
                                                                                                            
                                                    2016 Same Store Assumptions (see Note
                                                                   below)
----------------------------------------------------------------------------------------------------------------------------------------
                                                                                                            
Physical occupancy                                                                                                       96.0%
Revenue change                                                                                                      4.50% to 5.25%
Expense change                                                                                                      2.50% to 3.50%
NOI change                                                                                                          5.00% to 6.50%
                                                                                                            
Note: The same store guidance provided above is based on the
approximately 70,000 apartment units expected to be included in same
store properties by December 31, 2016. Approximately 25 basis point
change in NOI percentage = $0.01 per share change in
EPS/FFO/Normalized FFO.
                                                                                                            
                                                        2016 Transaction Assumptions
----------------------------------------------------------------------------------------------------------------------------------------
                                                                                                            
Consolidated rental acquisitions                                                                                    $600.0 million
Consolidated rental dispositions                                                                                     $7.4 billion
Capitalization rate spread                                                                                          75 basis points
                                                                                                            
                                                   2016 Debt Assumptions (see Note below)
----------------------------------------------------------------------------------------------------------------------------------------
                                                                                                            
Weighted average debt outstanding                                                                            $8.8 billion to $9.2 billion
Weighted average interest rate (reduced for capitalized interest)                                                        4.03%
Interest expense, net (on a Normalized FFO basis)                                                          $354.6 million to $370.8 million
Capitalized interest                                                                                        $47.0 million to $53.0 million
                                                                                                            
Note: All 2016 debt assumptions are shown on a Normalized FFO basis
and therefore exclude the impact of the debt extinguishment
costs/prepayment penalties described on page 3.
                                                                                                            
                                                       2016 Other Guidance Assumptions
----------------------------------------------------------------------------------------------------------------------------------------
                                                                                                            
General and administrative expense (see Note below)                                                         $54.0 million to $56.0 million
Interest and other income                                                                                    $2.5 million to $3.5 million
Income and other tax expense                                                                                 $1.0 million to $1.5 million
Debt offerings                                                                                             $200.0 million to $250.0 million
Equity ATM share offerings                                                                                        No amounts budgeted
Preferred share offerings                                                                                         No amounts budgeted
Special dividend paid in Q2 2016                                                                                    $8.00 per share
Special dividend paid later in 2016                                                                            $2.00 to $4.00 per share
Regular annual dividend (paid in four equal quarterly installments)                                                $2.015 per share
Weighted average Common Shares and Units - Diluted                                                                   382.5 million
                                                                                                            
Note: Normalized FFO guidance excludes a duplicative charge of
approximately $1.4 million, which will be recorded to general and
administrative expense, related to the Company’s revised executive
compensation program.
 
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                    Equity Residential
                                                                                                                   Additional Reconciliations, Definitions and Footnotes
                                                                                                                       (Amounts in thousands except per share data)
                                                                                                                              (All per share data is diluted)
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
 
                                                                                                               The guidance/projections provided below are based on current
                                                                                                                           expectations and are forward-looking.
 
                                                                                                             Reconciliations of EPS to FFO and Normalized FFO for Pages 7, 25
                                                                                                                                          and 26
                                                                                                                                                                                                                 Expected             Expected
                                                                                                                               Expected Q4 2015                                                                                      Q1 2016                                  2016
                                                                                             Amounts                                                   Per Share                                                 Per Share                               Per Share
                                                                    ------------------------------------------------------                        ------------------------------------------------------                        ----------------                      --------------------
                                                                                                                                                                                                                                                                       
Expected Earnings - Diluted (5)                                                        $        188,338                                                              $          0.494                                           $10.05 to $10.09                        $12.66 to $12.86
Add: Expected depreciation expense                                                              196,454                                                                         0.516                                                 0.47                                    1.96
Less: Expected net gain on sales (5)                                         (39,483 )                                                   (0.104 )                                              (9.92)                                  (11.76)
                                                                    -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      ----------------                      --------------------
                                                                                                                                                                                                                                                                       
Expected FFO - Diluted (1) (3)                                                                  345,309                                                                         0.906                                             0.60 to 0.64                            2.86 to 3.06
                                                                                                                                                                                                                                                                       
Asset impairment and valuation allowances                                                --                                                                --                                            --                          --
Property acquisition costs and write-off of pursuit costs                                         1,789                                                                         0.005                                                 0.01                                    0.02
Debt extinguishment (gains) losses, including prepayment penalties,                                  40                                                                --                                                 0.31                                    0.32
preferred share redemptions and non-cash convertible debt discounts
(Gains) losses on sales of non-operating assets, net of income and                                 (666 )                                                                      (0.002 )                                              (0.19)                                  (0.20)
other tax
expense (benefit)
Other miscellaneous non-comparable items                                       2,336                                   0.007                         --                          --
                                                                    -------------------- -------------- --------------------                      -------------------- -------------- --------------------                      ----------------                      --------------------
                                                                                                                                                                                                                                                                       
Expected Normalized FFO - Diluted (2) (3)                                              $        348,808                                           $          0.916                         $0.73 to $0.77                          $3.00 to $3.20
                                                                    ==================== ============== ====================                      ==================== ============== ====================                      ================                      ====================
                                  Definitions and Footnotes for Pages 7, 25 and 26
                
(1)                               The National Association of Real Estate Investment Trusts ("NAREIT")
                                  defines funds from operations ("FFO") (April 2002 White Paper) as
                                  net income (computed in accordance with accounting principles
                                  generally accepted in the United States ("GAAP")), excluding gains
                                  (or losses) from sales and impairment write-downs of depreciable
                                  operating properties, plus depreciation and amortization, and after
                                  adjustments for unconsolidated partnerships and joint ventures.
                                  Adjustments for unconsolidated partnerships and joint ventures will
                                  be calculated to reflect funds from operations on the same basis.
                                  The April 2002 White Paper states that gain or loss on sales of
                                  property is excluded from FFO for previously depreciated operating
                                  properties only. Once the Company commences the conversion of
                                  apartment units to condominiums, it simultaneously discontinues
                                  depreciation of such property.
                                   
(2)                               Normalized funds from operations ("Normalized FFO") begins with FFO
                                  and excludes:
                                  ? the impact of any expenses relating to non-operating asset
                                  impairment and valuation allowances;
                                  ? property acquisition and other transaction costs related to
                                  mergers and acquisitions and pursuit cost write-offs;
                                  ? gains and losses from early debt extinguishment, including
                                  prepayment penalties, preferred share redemptions and the cost
                                  related to the implied option value of non-cash convertible debt
                                  discounts;
                                  ? gains and losses on the sales of non-operating assets, including
                                  gains and losses from land parcel and condominium sales, net of the
                                  effect of income tax benefits or expenses; and
                                  ? other miscellaneous non-comparable items.
                                   
(3)                               The Company believes that FFO and FFO available to Common Shares and
                                  Units are helpful to investors as supplemental measures of the
                                  operating performance of a real estate company, because they are
                                  recognized measures of performance by the real estate industry and
                                  by excluding gains or losses related to dispositions of depreciable
                                  property and excluding real estate depreciation (which can vary
                                  among owners of identical assets in similar condition based on
                                  historical cost accounting and useful life estimates), FFO and FFO
                                  available to Common Shares and Units can help compare the operating
                                  performance of a company’s real estate between periods or as
                                  compared to different companies. The Company also believes that
                                  Normalized FFO and Normalized FFO available to Common Shares and
                                  Units are helpful to investors as supplemental measures of the
                                  operating performance of a real estate company because they allow
                                  investors to compare the Company’s operating performance to its
                                  performance in prior reporting periods and to the operating
                                  performance of other real estate companies without the effect of
                                  items that by their nature are not comparable from period to period
                                  and tend to obscure the Company’s actual operating results. FFO, FFO
                                  available to Common Shares and Units, Normalized FFO and Normalized
                                  FFO available to Common Shares and Units do not represent net
                                  income, net income available to Common Shares or net cash flows from
                                  operating activities in accordance with GAAP. Therefore, FFO, FFO
                                  available to Common Shares and Units, Normalized FFO and Normalized
                                  FFO available to Common Shares and Units should not be exclusively
                                  considered as alternatives to net income, net income available to
                                  Common Shares or net cash flows from operating activities as
                                  determined by GAAP or as a measure of liquidity. The Company’s
                                  calculation of FFO, FFO available to Common Shares and Units,
                                  Normalized FFO and Normalized FFO available to Common Shares and
                                  Units may differ from other real estate companies due to, among
                                  other items, variations in cost capitalization policies for capital
                                  expenditures and, accordingly, may not be comparable to such other
                                  real estate companies.
                                                                            
(4)                               FFO available to Common Shares and Units and Normalized FFO
                                  available to Common Shares and Units are calculated on a basis
                                  consistent with net income available to Common Shares and reflects
                                  adjustments to net income for preferred distributions and premiums
                                  on redemption of preferred shares in accordance with accounting
                                  principles generally accepted in the United States. The equity
                                  positions of various individuals and entities that contributed their
                                  properties to the Operating Partnership in exchange for OP Units are
                                  collectively referred to as the "Noncontrolling Interests -
                                  Operating Partnership". Subject to certain restrictions, the
                                  Noncontrolling Interests - Operating Partnership may exchange their
                                  OP Units for Common Shares on a one-for-one basis.
                                                                            
(5)                               Earnings represents net income per share calculated in accordance
                                  with accounting principles generally accepted in the United States.
                                  Expected earnings is calculated on a basis consistent with actual
                                  earnings. Due to the uncertain timing and extent of property
                                  dispositions and the resulting gains/losses on sales, actual
                                  earnings could differ materially from expected earnings.
                                                                                                                                              Same Store NOI Reconciliation for Page 11
 
The following tables present reconciliations of operating income per
the consolidated statements of operations to NOI for the 2015 and
the Fourth Quarter 2015 Same Store Properties:
                                                                                                                                                                                                      
                                                                                                             Year Ended December 31,                                                                                                                       Quarter Ended December 31,
                                                          -----------------------------------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------
                                                                                  2015                                                                     2014                                                                    2015                                                                   2014
                                                          ----------------------------------------------------                     ----------------------------------------------------                     --------------------------------------------------                     --------------------------------------------------
                                                                                                                                                                                                                                                                                    
Operating income                                                             $ 1,008,820                                                              $   921,375                                                              $ 286,964                                                              $ 250,532
Adjustments:
    Non-same store operating results                                            (107,606 )                                                               (103,123 )                                                              (22,869 )                                                              (23,188 )
    Fee and asset management revenue                                              (8,387 )                                                                 (9,437 )                                                               (1,974 )                                                               (1,841 )
    Fee and asset management expense                                               5,021                                                                    5,429                                                                  1,257                                                                  1,136
    Depreciation                                                                 765,895                                                                  758,861                                                                181,033                                                                193,089
    General and administrative                                 65,082                             50,948                           14,140                            9,652  
                                                          -------------------- --------- --------------------                      -------------------- --------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
                                                                                                                                                                                                                                                                                    
Same store NOI                                                               $ 1,728,825                                           $ 1,624,053                                           $ 458,551                                           $ 429,380  
                                                          ==================== ========= ====================                      ==================== ========= ====================                      ==================== ======= ====================                      ==================== ======= ====================

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160202006623r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20160202006623/en/

SOURCE: Equity Residential

Equity Residential 
Marty McKenna, (312) 928-1901


Register |  Password |  Feedback |  Copyright |  Usage Agreement |  Privacy Policy |  Advertising |  About Us |  Contact Us |  FAQ 

Past performance is not indicative of future results

StockSelector.com, the StockSelector.com logo, and News Selects are trademarks of StockSelector.com.
Copyright © 1998 - 2017 StockSelector.com. All rights reserved.